The explicit functions given to the Fed by the Congress include all of the following except:
A. providing banking services to the U.S. government.
B. holding the nominal interest rate no more than 2 percent above the real interest rate.
C. regulating financial institutions.
D. serving as a lender of last resort to financial institutions.
Answer: B
You might also like to view...
For the affected individuals, pecuniary externalities can be as harmful as technological externalities
a. True b. False
Which of the following is true of a "vanilla" bond?
a. It realizes capital gains in multiples of $1,000. b. It provides a fluctuating stream of interest income every year. c. It assures a return higher than the market rate of interest. d. It has a par value payable after a certain number of years from its issuance.
The reform of the welfare system passed by Congress and signed by President Clinton changed the benefits for welfare recipients as it
a. decreased the number of people eligible for benefits, increased the benefit amount for those still eligible, and set a maximum coverage period of five years b. decreased the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of three years c. increased the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of three years d. decreased the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of five years e. froze the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of three years
To produce honey, beekeepers place hives of bees in the fields of farmers. As bees gather nectar, they pollinate the crops in the fields, which increases the yields of these fields at no additional cost to the farmer. What might be a reasonable private solution to this externality, and how might the solution be reached?