What is true about the Federal Reserve System?
a. The Fed prints US currency and investigates counterfeit currency cases
b. The Fed accepts deposits from and makes loans to commercial banks
c. The Fed is a lender of last resort for high-poverty small businesses
d. There are 21 Federal Reserve Banks across the US
Ans: b. The Fed accepts deposits from and makes loans to commercial banks
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If the graph shown represents Suzi's budget constraint, what can be said about hairbands?
A. They cost twice as much as earrings.
B. They cost half as much as earrings.
C. Suzi likes hairbands more than earrings.
D. Suzi is willing to pay twice as much for hairbands.
Which of the following is most likely to be an inferior good? a. Porsches
b. Lobster. c. Used clothing. d. An Ivy League education.
Because a? monopoly's demand curve is the same as the market demand curve for its? product
A) the monopoly is a price taker.
B) the monopoly's average total cost always falls as it increases its output.
C) the monopoly's marginal revenue equals its price.
D) the monopoly must lower its price to sell more of its product.
Which of the following statements is true?
A. International capital-flow shocks have domestic effects under fixed exchange rates but not under floating exchange rates. B. A domestic monetary shock is less disruptive with floating exchange rates. C. With floating exchange rates, the transmission of business cycles through foreign trade and repercussion is less than with fixed exchange rates. D. If foreign capital is highly responsive to changes in interest rates, then domestic spending shocks are less disruptive with fixed exchange rates.