Which of the following statements is most correct?
A. Financial intermediaries are banks.
B. A bank is a financial intermediary.
C. Financial intermediaries are essential to direct finance.
D. Financial intermediaries are insurance companies.
Answer: B
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Which of the following happened during the recession of 2007-2009?
A) Housing prices rose. B) Unemployment increased. C) Consumption increased. D) Food prices rose.
An inflation rate that exceeds 50 percent per month is referred to as
A) hyperinflation. B) destructive deflation. C) superflation. D) anticipated inflation.
If a bank has deposits worth $800,000 . total reserves worth $800,000 . and the reserve ratio of 0.20, what is the value of excess reserves?
a. $620,000 b. $1,000,000 c. $1,160,000 d. $640,000 e. $160,000
Monetarists advocate that the
A. money supply should be increased during inflation and reduced during recession. B. money supply should be reduced during inflation and increased during recession. C. money supply should be increased by a constant rate year after year. D. counter cyclical approach to fiscal policy be adopted.