Cutting the interest rate paid on reserves should make banks

A. less willing to meet the margin requirement.
B. more willing to use their funds for lending.
C. more willing to meet the margin requirement.
D. less willing to use their funds for lending.


Answer: B

Economics

You might also like to view...

If the quantity demanded changes by an infinitely large amount for a given change in price, then demand is

A) perfectly inelastic. B) perfectly elastic. C) elastic. D) inelastic.

Economics

A person 16 years or older who does not work, but is actively looking for work, is officially classified as:

A. employed. B. out of the labor force. C. unemployed. D. chronically unemployed.

Economics

Any firm?s ________ equals P × q.

A. total cost B. total revenue C. marginal cost D. marginal revenue

Economics

In the above figure, the long-run average cost curve exhibits constant returns to scale

A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.

Economics