Banks make use of the federal funds market in part to

A) pay their tax liabilities.
B) manage liquidity risk.
C) deal with moral hazard.
D) deal with adverse selection.


B

Economics

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Indicate whether the statement is true or false

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"Dividing the economic pie more equally may reduce the size of the economic pie." This argument is characterized as:

a. untrue. b. a form of discrimination. c. a conflict between equity and efficiency. d. a conflict between full employment and economic growth. e. b and c.

Economics

Relating to the Economics in Practice on page 340: Europe has a carbon tax, and electricity producers are among the largest of the carbon producing firms. The carbon tax increased the price of electricity, and researchers found that the amount of the tax that was actually passed through to consumers reflected a ________ aggregate demand for electricity.

A. very inelastic B. unit elastic C. perfectly inelastic D. slightly elastic

Economics

The wage rate increases in a purely competitive industry. This change will result in a(n):

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Economics