If the Fed wants to lower interest rates, it should
A. increase the discount rate.
B. increase the reserve ratio.
C. buy government securities in the open market.
D. sell government securities in the open market.
C. buy government securities in the open market.
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If the government stops granting temporary work permits to foreign nationals, the demand for labor will ________, the supply of labor will ________, and the quantity of labor hired will ________
A) increase; decrease; decrease B) increase; decrease; remain the same C) remain the same; increase; decrease D) remain the same; decrease; decrease
Suppose you are a manager for a company that produces grape jelly. Which of the following is the best way for you to reduce your risk?
A) acquire a derivative that increases in value if grape prices increase B) acquire a derivative that increases in value if grape jelly prices increase C) sell a derivative that increases in value if grape prices increase D) sell a derivative that increases in value if grape jelly prices increase
Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's required reserves?
A) $25,000 B) $55,000 C) $80,000 D) $135,000
The Federal Reserve System is controlled by the
A. U.S. Department of the Treasury. B. House of Representatives and the Senate. C. Board of Governors. D. President of the United States.