The regulation that sets the minimum fraction of deposits banks must hold in reserve is called the:
A. reserve requirement.
B. money multiplier.
C. interest rate.
D. dual mandate.
A. reserve requirement.
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Suppose you transfer $2,000 from your mutual fund account to your checking account. What is the immediate impact of this transfer on M1 and M2?
What will be an ideal response?
In a market where a positive externality is present, the effect of a government subsidy would be to ensure:
A. a more fair distribution of surplus. B. an efficient outcome. C. that those who enjoy the benefit receive the surplus. D. All of these statements are true.
Every time an individual decides to try out new equipment, or finds better ways to manage money, he or she is exhibiting aspects of: a. money management
b. entrepreneurship. c. strategic management. d. capital management.
If the exchange rate between euros and dollars were 2 euros per dollar, when a French tourist buys a good valued at $80, its cost in euros would be: a. 160 euros. b. 80 euros
c. 78 euros. d. 40 euros.