The percentage of demand deposits that banks and other financial intermediaries are required to keep in cash reserves is known as
a. the fractional reserve requirement
b. the excess reserve requirement
c. the legal reserve requirement
d. the interest rate
e. M1 money
C
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If the Fed reduces the supply of bank reserves, ________
A) investment increases B) consumption increases C) the federal funds rate increases D) the federal funds rate falls
In the above figure, what is the quantity of workers that would be hired by a monopsonist?
A) Q1 B) Q2 C) Q3 D) Q4
Who buys and sells in the Fed funds market?
A. Financial institutions and large corporations B. Anyone with a computer and an Internet connection can participate C. Only commercial banks and depository institutions D. All large financial institutions
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 18.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one snowboard is painting:
A. 1/8 of a kite. B. 1.5 kites. C. 8 kites. D. 12 kites.