What policy tool of the Federal Reserve relies on bank borrowing to be effective?
A. Open-market operations
B. Check collection
C. The reserve ratio
D. The discount rate
D. The discount rate
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The funds that banks are required by law to hold in the form of either vault cash or deposits with the Fed are called
a. excess reserves. b. fractional reserves. c. required reserves. d. certificates of deposit.
Critics of government regulation argue that government interference in the marketplace stifles the "animal spirits" of entrepreneurship.
Answer the following statement true (T) or false (F)
Which of the following provides public assistance to those who are blind and otherwise disabled?
A. Medicare. B. Supplemental Security Income (SSI). C. Medicaid. D. TANF.
Which of the following is an assumption made by the dynamic model of aggregate demand and aggregate supply?
A) Aggregate demand and potential real GDP decrease continuously. B) The aggregate demand curve shifts to the right except during periods when workers and firms expect higher wages. C) Potential real GDP increases continuously during economic expansions and decreases continuously during economic recessions. D) The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.