Why is it technically incorrect to say that the board of directors of the regional Fed banks set the discount rate that each bank charges?
What will be an ideal response?
While the Federal Reserve Act specifies that the discount rate is to be set by the board of directors of each Reserve Bank and approved by the Board of Governors, the boards of directors virtually have no say over the discount rate. The discount rate is automatically set at a premium over the target federal funds rate, the overnight interest rate established by the FOMC. Once the FOMC makes its decision, there is nothing left for the boards of each bank to do.
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A specified maximum amount of the good that may be imported in a given period of time is a
A) dumping limit. B) tariff. C) quota. D) sanction. E) forcible limit.
In the above figure, if the interest rate is 4 percent, people
A) sell bonds so as to convert them into money. B) buy bonds so as to have a better store of value. C) petition the Fed to tighten the quantity of money. D) buy stocks, because stocks are more liquid than currency.
In the above figure, what is the wage rate the monopsonist will pay?
A) W1 B) W2 C) W3 D) W4
Which of the following statements correctly characterizes the distribution of colonial wealth?
a. Colonial wealth was distributed equally across the population. b. While the distribution wealth was highly concentrated in the South, New England , the Middle colonies had very equal wealth distributions. c. Wealth inequality tended to be greatest in colonial cities. d. A permanent underclass of free poor people developed during the colonial period.