Everything else held constant, in the market for reserves, decreases in the interest rate paid on excess reserves affect the federal funds rate
A) when the funds rate is below the interest rate paid on excess reserves.
B) when the funds rate equals the interest rate paid on excess reserves.
C) when the funds rate is below the discount rate.
D) when the funds rate equals the discount rate.
B
You might also like to view...
The abrupt end of long distance cattle drives in 1885 was primarily due to
a. the development of railroad cars that could haul cattle. b. organized efforts by northern cattlemen to reduce overstocking of cattle on the northern ranges. c. the advent of barbed wire fences. d. a reduced demand for beef in both domestic and export markets.
Which of the following is true about the demand curve for a monopolistically competitive firm?
a. It is less elastic (steeper) than for monopoly, but more elastic (flatter) than for a perfectly competitive firm. b. It is less elastic (steeper) than the demand curve for either a monopoly firm or a perfectly competitive firm. c. It is more elastic (flatter) than the demand curves for either a monopoly firm or a perfectly competitive firm. d. It is less elastic (steeper) than for a perfectly competitive firm, but more elastic (flatter) than for a monopoly firm.
Under perfect competition in the long run, price is equal to
A. marginal revenue. B. marginal cost. C. average total cost. D. All of the choices are equal to price under perfect competition.
A bank initially has $190 million in assets and $150 million in liabilities. The banks net worth (capital) is _____________ million. If the bank's assets increase by 10% and its liabilities do not change, its capital increases by ____________
A) $340; 10% B) $40; 47.5% C) $40; 10% D) $40; 32.2%