Which of the following is not a major function of the Federal Reserve System?
A) setting income tax rates B) controlling the money supply
C) lender of last resort D) clearing checks between banks
A
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In any subgame perfect equilibrium to an infinitely repeated Prisoners' Dilemma game, the players will end up cooperating.
Answer the following statement true (T) or false (F)
The two key factors that trigger speculative attacks on emerging market currencies are
A) deterioration in bank balance sheets and severe fiscal imbalances. B) deterioration in bank balance sheets and low interest rates abroad. C) low interest rates abroad and severe fiscal imbalances. D) low interest rates abroad and rising asset prices.
Compared with a 100% reserve system, fractional reserve banking
a) makes the economy more stable b) creates a greater risk of bank insolvency c) gives banks less control over the money supply d) makes the money multiplier smaller e) means that each dollar of currency is backed by a smaller amount of gold
Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. An improvement in technology may be represented by a
A. movement along ppf1. B. shift from ppf1 to ppf2. C. movement along ppf2. D. shift from ppf2 to ppf1.