One reason the Federal Reserve System was set up was to
a. increase the safety of the U.S. banking system.
b. provide the United States with a more flexible supply of currency.
c. provide banking services for the federal government.
d. do all of these.
d. do all of these.
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Which of the following is the BEST example of a private good?
A) a can of Mountain Dew B) fish in the ocean C) cable television D) national defense
________ is called an implicit cost, while ________ is called an explicit cost
A) A nonmonetary opportunity cost; a cost that involves spending money B) An accounting cost; an economic cost C) A production cost; a sales cost D) An actual cost; a hypothetical cost
Since Norway has close trading links with the euro zone
A) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. B) a small reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. C) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly. D) a big reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. E) a big reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly.
Banks hold some deposits on reserve at the Fed because
A) the Fed requires every bank to hold at least $100 million on deposit at all times. B) the Fed will insure those deposits, but will not insure regular bank deposits. C) these are membership dues for being a member bank. D) these deposits meet the reserve requirements of the Fed.