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. The collection or clearing of checks among commercial banks.
D. Controlling the supply of money.
Answer: D
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The price elasticity of demand is calculated as:
A) the change in price divided by the change in quantity demanded. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the percentage change in quantity demanded divided by the percentage change in price.
All else equal, in an economy with an upward-sloping production function, as an economy accumulates more capital goods,
A) the labor supply must increase. B) real GDP increases. C) the labor supply must decrease. D) the marginal product of capital will increase.
In the base year, the relationship between nominal and real GDP is
a. uncertain. b. one of equality. c. real GDP is higher. d. nominal GDP is higher.
The Royal Proclamation of 1763 and the Quebec Act of 1774 had all of the following effects except:
a. increased the price of farm labor b. increased the price of farm land c. decreased competition for existing farmers d. encouraged Scotch, Irish and German immigrants to rebel against England