The federal funds market is the market in which
a. banks lend and borrow reserves from each other for short periods of time
b. the Fed loans reserves to banks for short periods of time
c. banks withdraw reserves from the Fed for short periods of time
d. government borrows from the fed for short periods of time
e. the Fed borrows from the government for short periods of time
A
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Refer to Figure 2-14. What is the opportunity cost of producing 1 popsicle in Iceland?
A) 1 1/2 snow cones B) 3/4 of a snow cone C) 2/3 of a snow cone D) 270 snow cones
One of the main roles of a central bank is:
A. accepting deposits from households and other private individuals. B. coordinating the banking system to ensure a sound economy. C. funding federal government spending. D. managing the nation's money demand.
Price discrimination requires:
A. a firm to be a competitive firm. B. a firm to be able to segment its customers based on different price elasticities of demand. C. arbitrage. D. that the product can be easily resold.
When the actual inflation rate turns out to be greater than the expected inflation rate, who gains—the borrower or the lender—and who loses? Explain why
What will be an ideal response?