Which of the following is not true about the Federal Reserve banks?
A. They serve as bankers' banks
B. They are privately owned but government-controlled
C. Unlike other banks, they are not motivated by profits
D. They compete with commercial banks in their basic functions
D. They compete with commercial banks in their basic functions
You might also like to view...
A financial asset is considered ________ if it can be sold in a secondary market
A) durable B) a security C) a liability D) a commodity
An effluent fee is imposed on a steel firm to reduce the amount of waste materials that it dumps in a river. Use the following two statements to answer this question:
I. The more easily factors of production can be substituted for one another (for example, capital can be used to reduce waste water), the more effective the fee will be in reducing effluent. II. The greater the degree of substitution of capital for waste water, the less the firm will have to pay in effluent fees. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
Expansionary policies are policies designed to:
A. increase the level of real GDP. B. reduce the level of real GDP. C. decrease government spending. D. reduce the federal deficit.
Which of the following would you expect to increase the equilibrium interest rate?
A) an increase in the percentage of income after net taxes that households save B) an increase in the budget deficit C) a decrease in the profitability of investment projects firms are considering D) the government begins running a budget surplus