Which of the following statements about stocks and bonds is true?
A. Stocks pay interest while bonds pay dividends
B. One can lose with stocks, but not with bonds
C. The U.S. Federal government issues bonds, but not stocks
D. Bonds are long term while stocks are short term investments
C. The U.S. Federal government issues bonds, but not stocks
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Legal reserve requirements specify that banks must hold a certain percentage of their deposit liabilities
a. in currency only. b. as deposits at regional Federal Reserve Banks only. c. either in currency or as deposits at regional Federal Reserve Banks. d. None of the above
Which of the following is an example of a bank's assets?
A) reserves borrowed from the Fed B) loans made to customers C) checkable deposits D) savings deposits
Which of the following is incorrect?
A. As the U.S. price level rises, U.S. goods become relatively more expensive so that U.S. exports fall and U.S. imports rise. B. As the price level falls, the demand for money declines, the interest rate declines, and interest-rate-sensitive spending increases. C. When the price level increases, real balances increase and businesses and households find themselves wealthier and therefore increase their spending. D. Given aggregate demand, an increase in aggregate supply increases real output and, assuming downward-flexible prices, reduces the price level.
Resource use is allocatively efficient when
A) we produce the goods with the highest opportunity cost. B) we produce the goods with the lowest opportunity cost. C) we cannot produce more goods and services. D) we produce the amount of the different goods we value most highly.