If a bank's deposits at the Fed increase by $10 million, then
A) both the bank's liabilities and the Fed's liabilities increase by $10 million.
B) the bank's assets increase by $10 million, but there is no change at the Fed since it does not really have assets or liabilities.
C) the bank's assets increase by $10 million and the Fed's liabilities increase by $10 million.
D) both the bank's assets and the Fed's assets increase by $10 million.
C
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The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D2?
A) a decrease in the price of iPods B) a decrease in the price of Zunes, a substitute for iPods C) an increase in the price of iPods D) a decrease in people's incomes if iPods are a normal good E) a requirement that all students at universities have an iPod
Marginal social cost is made up of marginal private cost and incidental cost
a. True b. False Indicate whether the statement is true or false
If output is above its natural rate, then according to sticky-wage theory
a. workers and firms will strike bargains for higher wages. This increase in wages shifts the short-run aggregate supply curve right. b. workers and firms will strike bargains for higher wages. This increase in wages shifts the short-run aggregate supply curve left. c. workers and firms will strike bargains for lower wages. This decrease in wages shifts the short-run aggregate supply curve right. d. workers and firms will strike bargains for lower wages. This decrease in wages shifts the short-run aggregate supply curve left.
When money is accepted as payment for a good or service, it is being used as a:
A. medium of exchange. B. store of value. C. unit of account. D. mechanism for transforming current purchases into future purchases.