Suppose you were the president of the Dayton National Bank, the only bank in Dayton, Ohio. You wanted to borrow money from the Fed. You pick up the phone to ask the Fed what today's _____________ is because that's the rate the Fed charges member banks who borrow from it
a. prime rate
b. federal funds rate
c. discount rate
d. federal reserve rate
e. federal bank rate
C
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If a country has a ________ exchange rate, its central bank must buy and sell its holdings of currencies to maintain a given exchange rate
A) flexible B) fixed C) floating D) all of the above
The Fed's forward guidance in 2011 and early 2012 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
Suppose the market for tortillas is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of labor both increased. What happened in the market for tortillas?
A. The supply for tortillas decreased. B. The demand for tortillas increased. C. The supply for tortillas increased. D. The demand for tortillas decreased.