Which of the following compose the reserves of a commercial bank?
A. checkable deposits and time deposits
B. vault cash and deposits of the bank with the Federal Reserve
C. U.S. securities and stock equity
D. cash and U.S. securities
Answer: B
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The short run Phillips curve
A) shows that any inflation rate can co-exist with the natural unemployment rate. B) shows the tradeoff between the inflation rate and the unemployment rate, and it shifts when the expected inflation rate changes. C) shows the relationship between the inflation rate and the expected inflation rate, and it shifts when the natural unemployment rate changes. D) shows the relationship between the inflation rate and the nominal interest rate, and it shifts when the natural unemployment rate changes. E) shows the tradeoff between the inflation rate and the unemployment rate and it shifts when the inflation rate changes.
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, her marginal propensity to consume out of permanent increases in income is
A) 0.25. B) 0.33. C) 0.67. D) 0.75.
The political process can impede redistribution goals because _____
a. there are more stingy voters than generous voters b. there are more middle class voters than poor voters c. there are more dumb voters than smart voters d. there are more middle class politicians than poor politicians
Because a bank pays a lower interest rate on deposits than it charges on loans, it cannot fail
a. True b. False Indicate whether the statement is true or false