The market where banks borrow from other banks for short periods of time is the:
a. discount market.
b. federal funds market.
c. inter-bank loan market.
d. national bank market.
e. liquidity market.
b
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Which of the following would cause an outward shift of the production possibilities frontier?
a. An increase in opportunity costs b. A reduction in the size of the labor force c. A reduction in inefficiency d. A change in the combination of goods produced e. An improvement in technology
In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it can still benefit by trading with the other country
Indicate whether the statement is true or false
The U.S. federal government obtains most of its revenues through taxes from three sources. Which of the following is not one of those three main sources of federal revenue?
A) corporate income taxes B) social insurance taxes C) sales and excise taxes D) individual income taxes
A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that
A) anyone can be made better off. B) no one can be made worse off. C) someone can be made better off without making someone else worse off. D) someone can be made better off without making everyone else worse off.