If the Fed sells securities to commercial banks, there is no money multiplier effect
Indicate whether the statement is true or false
FALSE
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What is the relationship between price, marginal revenue, and total revenue for a monopolist?
What will be an ideal response?
Through correspondent banking, large banks provide services to small banks, including
A) loan guarantees. B) foreign exchange transactions. C) issuing stock. D) debt reduction.
If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account, _____
a. the money supply will not increase as much as it would had borrowers deposited all of the money b. the money supply will remain unchanged c. the money supply will decrease as much as it would had borrowers deposited all the money d. the banking system will collapse e. the economy will experience a recession
Which of the following is a distinguishing characteristic of a user charge?
a. Persons pay roughly in proportion to the extent that they use the good or service. b. Persons with high incomes pay a larger amount than persons with lower incomes for the same good or service. c. Persons with high incomes pay a larger percentage of their income than persons with lower incomes for the same good or service. d. Persons with high incomes pay a smaller percentage of their income than persons with lower incomes for the same good or service.