An individual's need for liquidity would increase if
A) the average value of transactions carried out by the individual fell.
B) the average value of transactions carried out by the individual rose.
C) the individual got a raise.
D) the individual received a new ATM card.
E) the individual wanted to avoid risks.
B
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Is cutting down a tree in two hours with an ax more efficient than cutting it down in ten minutes with a gasoline-powered chain saw?
A) No, because time is valuable. B) Yes, because hand tools conserve nonrenewable energy resources. C) It could be, if the person cutting down the tree places a high enough value on the exercise. D) There is no way to answer the question.
Fill in the blank: ________ is another term for a decline in real GDP is
A) Deflation. B) Inflation C) Economic growth D) Recession E) Unemployment
Which of the following statements comparing the European System of Central Banks and the Federal Reserve System is TRUE?
A) The budgets of the Federal Reserve Banks are controlled by the Board of Governors, while the National Central Banks control their own budgets and the budget of the European Central Bank. B) The European Central Bank has similar power over the National Central Banks when compared to the level of power the Board of Governors has over the Federal Reserve Banks. C) Just like the Federal Reserve System, monetary operations are centralized in the European System of Central Banks with the European Central Bank. D) The European Central Bank's involvement in supervision and regulation of financial institutions is comparable to the Board of Governors' involvement.
The currency—deposit ratio is determined by
A) banks. B) the public. C) the Federal Reserve. D) Congress.