A bank's required reserves are either held as vault cash or:
a. used to purchase Treasury bonds.
b. deposited with the Fed.
c. invested in the stock market.
d. loaned out to other commercial banks.
b
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Every six weeks, the Federal Open Market Committee (FOMC) meets to discuss how to best adjust ________ to accommodate shocks that shift the level of ________
A) the equilibrium real interest rate; the target Fed Funds rate B) the target Fed Funds rate; the equilibrium real interest rate C) the 3 month T-bill rate; the inflation gap D) target rate of inflation; money demand E) none of the above
Do economists analyze people's thought processes or do they look at what people actually do?
A) Economists focus only on people's thought processes. B) Economists focus on what people do, not their thought processes. C) An economist's focus is about half-and-half between actions and thought processes. D) Macroeconomists focus on thought processes while microeconomists focus on actions.
The balance of trade is the value of:
A. total goods sold by the U.S. to parties abroad. B. total goods purchased by the U.S. from abroad. C. exports minus the value of imports. D. imports minus the value of exports.
For a perfectly competitive firm, marginal revenue is identical to marginal cost at every quantity
a. True b. False