. Until 2008, the Fed could make the market federal funds rate equal the target rate by:
A. setting the discount rate below the federal funds rate.
B. entering the federal funds market as a borrower or a lender.
C. paying higher interest on reserves.
D. mandating that all loans be transacted at the target rate.
Answer: B
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In the above figure, suppose the economy is initially at point A. People come to expect the future U.S. exchange rate to be higher. As a result there is a change from point A to a point such as ________
A) point B B) point C C) point D D) point E
When the supply of a good decreases and its demand increases by the same amount: a. Price will change in the same direction as the shift in demand
b. Price will change in the same direction as the shift in supply. c. Quantity exchanged will change in the same direction as the shift in supply. d. Quantity exchanged will change in the same direction as the shift in demand.
The private market:
a. tends to overproduce public goods because they are nonrivlarous b. can produce public goods more efficiently than the government can c. earns excessive profit on public goods
Each ADR represents ________ of the shares of the underlying foreign stock.
A) some number B) 100 C) 1 D) ADRs have nothing to do with foreign stocks.