In the model of the money supply process, the bank's role in influencing the money supply process is represented by
A) the excess reserve.
B) both the excess reserve and the market interest rate.
C) the currency ratio.
D) only borrowed reserves.
A
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When the social costs of producing or consuming a good exceed the private costs, _____
a. a positive externality exists b. an inefficiently high quantity of the good will be produced and consumed, from the society's point of view c. the direct consumers of the good will bear the external costs d. the individuals involved in the production of the good do not bear the private costs e. the quantity of the good produced will be less than the socially efficient level
Refer to the accompanying figure. At point D, the opportunity cost of making milk is:
A. high because productive resources that are better-suited to making movies are being used to make milk. B. low because the economy is specializing in making milk. C. high because productive resources that are better-suited to making movies are not being used to make milk. D. high because the economy is not operating efficiently.
Which of the following would be an implicit cost for a business owner?
A. The $40,000 profit for this fiscal year B. The $10 per unit cost for production of widgets C. The $50,000 salary the entrepreneur could be making as a CPA D. The $1500 electric bill for his business
In order to “defend” its overvalued currency, Argentina in 2002 had to reduce its
A. interest rates. B. tax levels. C. holdings of foreign reserves. D. balance of payments surpluses.