Which of the following is the basic economic policy function of the Federal Reserve Banks?
A. Holding the deposits or reserves of commercial banks.
B. Acting as fiscal agents for the federal government.
C. Controlling the supply of money.
D. The collection or clearing of checks among commercial banks.
C. Controlling the supply of money.
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The endogenous variable in the liquidity preference function is ________
A) demand for real money balances B) the nominal interest rate C) real income D) the price level E) none of the above
When total utility is falling, marginal utility is
a. increasing b. decreasing c. positive d. negative e. 0
When economies of scale exist, a decrease in the level of output will lead to:
a. a decrease in cost per unit. b. an increase in cost per unit. c. no change in cost per unit. d. an increase in total cost.
The thrift institutions:
a. were nonprofit banking institutions. b. were owned by the Federal Reserve. c. historically offered only savings accounts, not checking accounts. d. controlled the U.S. monetary policy prior to the establishment of the Federal Reserve. e. were monitored by the Federal Deposit Insurance Corporation.