What does it mean to say the United States has a dual banking system?
What will be an ideal response?
This means that banks can decide to be state chartered or federally chartered. There used to be very good reasons for selecting one over the other since choosing one over the other meant also deciding which regulators will oversee the bank. Although no longer the case, federally chartered banks were required to belong to the Federal Reserve and abide by reserve requirements and state banks were not. Now all domestically chartered banks must abide by the Federal Reserve's reserve requirements.
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The marginal propensity to consume (MPC) is calculated by which formula?
A. MPC = change in DI divided by change in C B. MPC = change in GDP divided by change in DI C. MPC = change in C divided by change in DI D. MPC = change in C divided by change in GDP
One tax system is less efficient than another if it
a. places a lower tax burden on lower-income families than on higher-income families. b. places a higher tax burden on lower-income families than on higher-income families. c. raises the same amount of revenue at a higher cost to taxpayers. d. raises less revenue at a lower cost to taxpayers.
If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates?
The sum of all of debit items in the balance of payments
A. equals "compensating" transactions. B. equals the errors and omissions. C. equals the overall balance. D. equals the sum of all credit items.