In the United States, where do depository institutions hold their reserves?
A) either as vault cash or on reserve with Federal Reserve district banks
B) All reserves must be held at a Federal Reserve district bank.
C) in accounts with the U.S. Department of the Treasury
D) in their own vaults in the form of precious metals such as gold and silver
A
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Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
The unemployment rate is
What will be an ideal response?
Which of the following was not a direct contributor to the booming housing market in the 2000s?
A. People could get mortgages with little or no money down. B. People were expecting housing prices to keep on rising. C. Lending standards became loose. D. Contractionary policy was passed in 2001.
The asset demand for money is downsloping because:
A. the opportunity cost of holding money increases as the interest rate rises. B. it is more attractive to hold money at high interest rates than at low interest rates. C. bond prices rise as interest rates rise. D. the opportunity cost of holding money declines as the interest rate rises.