When a commercial bank borrows from a Federal Reserve bank,
a. the commercial bank's reserves are reduced.
b. the commercial bank's lending ability is increased.
c. the money supply automatically declines.
d. the net worth of the bank will decline, indicating that the bank is having financial difficulties.
B
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In a first-price sealed-bid auction, the winner pays
A) its own, highest bid. B) the amount bid by the runner-up. C) the average of the three highest bids. D) the common value.
Some nonprice determinants of demand are:
A. consumer preferences, expectations of future prices, and the number of buyers in the market. B. consumer preferences, the price of the good, and incomes. C. incomes, expectations of future prices, and the number of sellers in the market. D. prices of related goods, knowledge of past prices, and the number of buyers in the market.
According to the search model, a computerized used car search service should
a. reduce the amount of search b. not affect the amount of search c. increase price dispersion d. reduce price dispersion e. lower the marginal benefit of search
In 1913, Congress established the Federal Reserve system with the intention of putting an end to
A) high interest rates. B) high unemployment rates. C) inflation. D) bank panics.