A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is:
a. zero
b. the prime rate.
c. the discount rate.
d. the federal funds rate.
e. the required reserve ratio.
d
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Assume that the reserve requirement is 10 percent. A $1,000 cash deposit into a savings account will immediately increase the bank's required reserves by _____
a. $10,000. b. $500. c. $100. d. $1,500. e. $10.
Explain why the government provides public libraries. After all, we can buy books in the free market from firms such as Barnes & Noble
Price floors are instituted because the government wants to:
A. help consumers. B. help producers. C. raise tax revenue. D. increase demand.
Camille is at the candy store with her grandmother, who offers to buy her $6 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's grandmother buy for her?
A. Six lollipops and three candy bars. B. Two lollipops and two candy bars. C. Three lollipops and two candy bars. D. One lollipop and three candy bars.