Which of the following is not a function of the Federal Reserve System?
a. Supervising the banking system.
b. Deciding the maximum interest rates banks can charge for loans.
c. Clearing checks.
d. Acting as a bank for banks.
e. Dealing with financial crises.
B
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Which of the following statements is true of inequality in the U.S. economy?
A) Inequality in the U.S. economy is now less than what it was in the year 1950. B) Inequality in the U.S. economy is now higher than what it was in the year 1950. C) Inequality in the U.S. economy had increased throughout the 20th century. D) Inequality in the U.S. economy had decreased throughout the 20th century.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
How does a bank make most of its profit on its business?
(A) By paying out less in interest on deposits than it earns in interest on loans. (B) By receiving fees from the government for handling federal and state accounts. (C) By collecting fees on safety deposit boxes, travelers' checks, and certified checks. (D) By collecting fees on credit card purchases.
A TRUE signal must
A) convey information only. B) convey information and direct the resource owners to act appropriately. C) convey information about the long-run future. D) explain in detail why something should be done.