The Fed acts as a lender of last resort for the banking system.

Answer the following statement true (T) or false (F)


True

Economics

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Refer to the scenario above. If both economies have identical depreciation rate, then:

A) economy A's steady state equilibrium will lie to the left and above economy B's steady state equilibrium. B) economy A's steady state equilibrium will lie to the right and below economy B's steady state equilibrium. C) economy A's steady state equilibrium will lie to the left and below economy B's steady state equilibrium. D) economy A's steady state equilibrium will lie to the right and above economy B's steady state equilibrium.

Economics

If a 10 percent increase in income results in an 8 percent increase in the quantity demanded of a good, the income elasticity of demand equals ________ and the good is ________ good

A) 0.80; an inferior B) 1.2; a normal C) 0.80; a normal D) -1.2; an inferior

Economics

During World War II (1941–45), the market coordinated what the government commanded in terms of production

Indicate whether the statement is true or false

Economics

When the Fed lowers the legal reserve requirement, the money supply contracts

Indicate whether the statement is true or false

Economics