Total reserves of private banks are
A. all customer deposits.
B. federal reserve notes.
C. deposits held at the Fed and vault cash.
D. the minimum amount banks need to hold against time deposits.
Answer: C
You might also like to view...
Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?
a. minimum-wage laws b. unions c. efficiency wages d. All of the above are correct.
"The government should provide health care for all citizens." This statement is an illustration of:
A. positive economic analysis. B. correlation analysis. C. fallacy of association analysis. D. normative economic analysis.
Taxes and needs-tested spending work as automatic fiscal policy to dampen the business cycle because taxes _______ during an expansion, and needs-tested spending _______ during a recession.
Fill in the blank(s) with the appropriate word(s).
Suppose that the current equilibrium GDP is $14.5 trillion and that potential GDP is $14.3 trillion. Will decreasing government purchases by $200 billion, or raising taxes by $200 billion, restore the economy to potential GDP? Explain
What will be an ideal response?