Which of the following actions by the federal reserve will result in an increase in banks' excess reserves?
a) buying bonds on the open market
b) selling bonds on the open market
c) increasing the discount rate
d) increasing the reserve requirement
e) increasing the federal funds rate
Ans: a) buying bonds on the open market
You might also like to view...
Why do consumers prefer higher indifference curves (farther to the right) to lower indifference curves?
What will be an ideal response?
Referring to the previous question, all else constant, a 5 unit increase in the wage index would cause:
A) quantity supplied to increase by 9 units and be shown by a movement up the supply curve. B) quantity supplied to decrease by 9 units and be shown by a movement down the supply curve. C) quantity supplied to increase by 9 units and be shown by a rightward shift of the supply curve. D) quantity supplied to decrease by 9 units and be shown by a leftward shift of the supply curve.
The most fundamental proposition of modern portfolio theory is that
A) investment risk is reduced by investing in on security. B) the smaller the standard deviation is, the larger is the risk of a portfolio. C) even though an asset is risky in isolation, when combined with other assets the risk of the portfolio is less, perhaps even zero. D) uncertain outcomes make for risky investments.
Which of the following is true? a. Total utility is the aggregate level of satisfaction that results from consumption of a given number of goods and services. b. Marginal utility is the additional satisfaction generated by the last unit of a good that is consumed
c. Total utility equals marginal utility of the last unit times the number of units consumed. d. Both a. and b. are true.