Describe the functions of the Federal Reserve System.
What will be an ideal response?
The Fed's functions include (1) controlling the money supply, (2) clearing checks, (3) supervising and regulating banks, (4) maintaining and circulating currency, (5) protecting consumers, and (6) maintaining federal government checking accounts and gold reserves.
You might also like to view...
Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
Is this game a prisoner's dilemma?
A. No. B. Yes. C. It cannot be determined. D. Only when both Firm A and Firm B invest.
Zoe is an executive at Dell Computer Company who is in charge of designing the next version of laptop computers. She will consider such features as screen size, weight, processor speed, and CD and DVD drives
Given the fact that it is costly to include more features in new products, why might Zoe be interested in data on how much consumers paid for a range of laptops with different attributes? A) in order to estimate willingness to pay for each feature. B) in order to set an optimal price for the laptops. C) in order to determine the best features to include. D) in order to estimate willingness to trade off one feature for another. E) all of the above
A shift to a more expansionary monetary policy will
a. help bring inflation under control. b. exert a stabilizing impact on the economy if the effects of the policy are felt during an economic downturn. c. exert a stabilizing impact if the effects of the policy are felt when the economy is operating at its full-employment capacity. d. reduce the natural rate of unemployment.
Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula) is:
A. 0.75. B. 0.6. C. 0.25. D. 20.