Federal Reserve liabilities and capital accounts are equal to
A) Federal Reserve assets.
B) gold certificates + Federal Reserve notes.
C) Federal Reserve notes outstanding.
D) bank reserves + government securities.
A
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Which of the following models results in the highest level of output assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Cartel
An example of cyclical unemployment is a(n):
a. textile worker permanently laid off due to job lost to imports. b. autoworker who is temporarily laid off due to a decline in demand for cars. c. engineer permanently laid off due to advances in technology. d. computer programmer who leaves one job and accepts a new job.
A potential money multiplier of 10 means that
a. excess reserve requirements are 90 percent b. a new deposit of $1,000 results in new demand deposits of $10,000 c. the legal reserve requirement is 10 percent d. there can be no more lending available e. the initial deposit must necessarily be $10
Keynesians believe a change in the money supply cannot lower the unemployment rate.
Indicate whether the statement is true or false.