The principal mechanism for directly changing the reserves of the banking system is:
A. The discount rate.
B. The reserve requirement.
C. Open-market operations.
D. The federal funds rate.
C. Open-market operations.
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If you have $2 million in a CD at a commercial bank that is a member of the FDIC, how much of your funds are uninsured?
A) $0 B) $1 million C) $1.75 million D) $2 million
For a monopoly market, total surplus can be defined as the value of the good to
a. producers minus the cost incurred by consumers. b. producers plus the cost incurred by consumers. c. consumers minus the costs of producing the good. d. consumers plus the cost of producing the good.
The initial dollars spent to eliminate pollution are most likely ______.
a. all that are needed b. completely wasted c. the least efficient d. the most efficient
Which is best considered a supply factor for long-run economic growth?
A. The stock of capital goods. B. Full employment of resources. C. Personal consumption expenditures. D. Government spending.