Other things equal, the interest rate on a loan will be larger:
A. The less the risk involved
B. The larger the amount of the loan
C. The longer the length of the loan
D. If loan interest is exempt from taxation
C. The longer the length of the loan
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If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the excess reserves-checkable deposit ratio is
A) 0.01. B) 0.10. C) 0.001. D) 0.05.
A sign that the Federal Reserve is moving to lower interest rates would be
A) a reduction in bank reserves. B) an increase in margin requirements. C) a widening gap between the Treasury bill yield and the discount rate. D) a narrowing gap between the Treasury bill yield and the discount rate.
The current level of deposit insurance is
A) $100,000 per depositor. B) $100,000 per deposit. C) $200,000 per depositor. D) $200,000 per deposit.
The annual membership fees of the 185 member countries of the IMF are called:
a. annuities. b. quotas. c. vetos. d. conditionalities. e. petrodollars.