If the Fed wants banks to have more money to lend, it can
A. sell government securities.
B. raise the reserve ratio.
C. lower the reserve ratio.
D. raise its discount rate.
Answer: C
You might also like to view...
Using the information in Table 6.2, the inflation rate from 2014 to 2015 is about
A) 26 percent. B) 38 percent. C) 42 percent. D) 49 percent.
In the figure above, the ________ gap is equal to ________
A) recessionary; $1 trillion B) inflationary; $1 trillion C) recessionary; $12 trillion D) inflationary; $12 trillion E) recessionary; $13 trillion
The difference between U.S. financial regulation between the 1930s-to-1980 period and the 1980-to-2010 period is:
a. The earlier period was characterized by heavy government regulations and the later one was characterized by looser government regulations. b.The earlier period was characterized by heavy use of the originate-to-distribute" strategy. c. The earlier period was characterized by recurring, nation-wide speculative housing bubbles. d. The earlier period was characterized by heavy use of securitization. e. All of the above.
The "guns versus butter" dilemma that all nations confront is that
A. An increase in national defense implies more sacrifices of civilian goods and services. B. Guns and butter can be produced using the same resources at the same time. C. An increase in national defense is possible only if we produce more butter. D. All of the choices are correct.