A primary goal of the Fed, if it sought after monetary equilibrium, is to
A) keep interest rates stable.
B) keep jobs plentiful.
C) keep the quantity supplied of money equal to the quantity demanded.
D) get the national debt paid off in a timely manner.
E) keep the M1 money supply is tied to the amount of gold reserves held in Fort Knox.
C
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According to purchasing power parity, a rise in inflation in the United States. relative to the rest of the world will lead to
A) a balance of payments surplus. B) a balance of payments deficit. C) an exchange rate appreciation. D) an exchange rate depreciation.
Would the maximum loan that a bank can make be different when receiving a discount loan from the Federal Reserve of $1 million versus receiving a checking account deposit of $1 million? Explain why or why not
What will be an ideal response?
When did the Fed fail to engage in a pre-emptive strike to keep the economy at or near the natural rate of unemployment?
A) 1994 B) 1998 C) 2001 D) None of the above. The Fed acted in each of these years.
A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is
a. zero. b. the prime rate. c. the discount rate. d. the federal funds rate. e. the required reserve ratio.