Which of the following is the principal mechanism used by the Federal Reserve to directly alter the reserves of the banking system?
A. Changes in the required reserve ratio.
B. Open market operations.
C. Changes in the discount rate.
D. Foreign exchange operations.
Answer: B
You might also like to view...
A firm is likely to pay higher efficiency wages when:
A) it is easy to monitor workers. B) it is not easy to monitor workers. C) workers do not have a tendency to shirk at work. D) the minimum wages are set above the equilibrium wage rate.
Refer to Figure 10-6. Which diagram demonstrates a decrease in total utility following an increase in the price of candy?
A) the movement from e to d in Panel A B) the movement from g to f in Panel B C) the movement from k to h in Panel C D) none of the above
A _____ gives an investor the exclusive legal right make, use, or sell an invention for a limited time
a. patent b. trademark c. copyright d. trade secret
An assistant manager at a restaurant gets a $100 a month raise. He figures that with his new monthly salary he cannot buy as many goods and services as he could buy last year
a. His real and nominal salary have risen. b. His real and nominal salary have fallen. c. His real salary has risen and his nominal salary has fallen. d. His real salary has fallen and his nominal salary has risen.