As the world economy becomes more integrated through globalization
A. the Fed will find it easier to conduct monetary policy.
B. the Fed will rely less on open market operations and more on changing the required reserve ratio when conducting monetary policy.
C. the Fed will have a more difficult time reaching its money supply growth rate targets.
D. U.S. interest rates will determine world interest rates.
Answer: C
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The difference between an agency office located abroad and a subsidiary bank located abroad is
A) an agency office is just a home bank in another country while a subsidiary bank is controlled by a foreign bank and subject to the same regulations as local banks. B) an agency office is just a home bank in another country while a subsidiary bank arranges loans and transfers funds but does not accept deposits. C) an agency office arranges loans and transfers funds but does not accept deposits while a subsidiary bank is controlled by a foreign bank and subject to the same regulations as local banks. D) an agency office arranges loans and transfers funds but does not accept deposits while a subsidiary bank is just a home bank in a foreign country. E) an agency office is controlled by a foreign bank and subject to the same regulations as local banks while a subsidiary bank arranges loans and transfers funds but does not accept deposits.
In 2008, the nominal GDP of the United States was approximately
a. $11.0 trillion b. $14.4 trillion c. $10.1 trillion d. $12.0 trillion e. $7.5 trillion
Suppose the demand for milk is relatively inelastic. What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?
A) Sales revenue remains unchanged. B) Sales revenue rises. C) Sales revenue falls. D) It cannot be determined without information on prices.
In a Nash equilibrium, all players select non-dominant strategies
Indicate whether the statement is true or false