Banks' asset portfolios include state and local government securities because
A) they help to attract business from these government entities.
B) banks consider them helpful in attracting accounts of Federal employees.
C) the Federal Reserve requires member banks to buy securities from state and local governments located within their respective Federal Reserve districts.
D) there is no default-risk with state and local government securities.
A
You might also like to view...
The Consumer Price Index (CPI) measures inflation for every individual
A) True, the weights used in calculating the CPI are adjusted for every individual in the country. B) True, people all face the same prices and therefore face the same inflation. C) False, the CPI uses weights based on how much each product represents in the typical household budget. D) False, the CPI doesn't measure inflation.
A tax cut that raises the after-tax wage rate will most likely result in more hours worked if
A) tax rates were low already. B) the relevant portion of the labor supply curve is upward sloping. C) the relevant portion of the labor supply curve is downward sloping. D) workers can be easily fooled.
In which one of the following currencies is an international loan likely to be measured?
a. German mark b. Japanese yen c. Chinese yuan d. Swiss franc
Whenever a consumer purchases good X but not good Y, then:
A. MRSXY ? PX/PY at the chosen bundle. B. MRSXY ? PX/PY at the chosen bundle. C. MRSXY = PX/PY at the chosen bundle. D. MRSXY = - PX/PY at the chosen bundle.