The primary function of the reserve requirements imposed by the Fed upon commercial banks is to
A) assure that Federal Reserve Banks will receive deposits with which they can purchase income-earning assets.
B) enable the government to borrow in emergencies.
C) protect the liquidity of the banking and monetary system.
D) protect the solvency of the commercial banking system.
E) serve as a control lever for central banking authorities.
E
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The opportunity cost of funds is the interest that can be earned by lending the funds
Indicate whether the statement is true or false
The FOMC is the agency that insures deposits up to $250,000
Indicate whether the statement is true or false
The total amount of taxes paid divided by before-tax income is the
A) median taxpayer rate. B) rate of hysteresis. C) average tax rate. D) marginal tax rate.
The "free rider" problem occurs when a good is
a. not available. b. not excludable. c. not depletable. d. not sold in free markets.