An open-market purchase by the Federal Reserve withdraws excess reserves from the banking system and causes the money supply to contract

a. True
b. False
Indicate whether the statement is true or false


False

Economics

You might also like to view...

According to the principle of egalitarianism:

A. society should place equal weight on the well-being of every individual. B. society should place all weight on the well-being of its worst-off member. C. society should place all weight on the well-being of its best-off member. D. equal division of society's resources among all members of the population is the most equitable outcome.

Economics

The market demand curve is derived by summing individual demand curves horizontally

a. True b. False Indicate whether the statement is true or false

Economics

Suppose a bank has $2 million in excess reserves and total reserves of $10 million. A required reserve ratio of 10% is applicable to all deposits at the bank. What is the total amount of deposits at the bank?

a. $800 million b. $80 million c. $10 million d. $20 million e. $100 million

Economics

The most volatile part of wealth is

A. transfer payments. B. Bonds. C. the stockmarket. D. savings accounts.

Economics