Which of the following determines the amount of money the banking system as a whole can create?
A) the limit on profits by banks imposed by the U.S. Congress
B) the quantity of vault cash held by banks
C) the gold reserves held by the Federal Reserve
D) the quantity of bank reserves
D
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The demand curve for a monopolistic competitor has a negative slope
a. True b. False Indicate whether the statement is true or false
If the wage rate were $25, how many workers would be hired?
Which of the following will tend to make the deposit expansion multiplier a larger number?
A. A decrease in loans made by commercial banks B. An increase in loans made by commercial banks C. An increase in the prime interest rate D. An increase in the money supply E. A decrease in the required reserve ratio
Which of the following is a primary market transaction?
A) Sally Wither purchases 100 shares of IBM through her broker. B) Kold Co. issues 1 million new shares through Morgan Stanley. C) Bob Hill sells 1,000 shares of Disney directly to his friend. D) Kip Peters sells 1,000 shares of Dush, Inc., which he bought in an IPO last month, through his broker.