Equilibrium in the market for bank reserves determines the
A) price level.
B) exchange rate.
C) federal funds rate.
D) 30-year Treasury bond rate.
E) inflation rate.
C
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During the American Revolution, Washington’s army nearly starved to death after price controls were enacted to “help” buy food for the army at affordable prices. The Continental Congress later passed a law that
A. exhorted the public to obey the law and help supply food to the army. B. passed tax increases to punish those who refused to sell the food. C. revised the American Law of Supply and Demand. D. overrode local ordinances and essentially repealed the price controls. E. called for the repeal of other price control measures.
A market structure characterized by a small number of interdependent sellers is called a(n)
A) monopoly. B) monopolistic competition. C) monopsony. D) oligopoly.
A bank would be considered insolvent when the value of its liabilities exceed its
A. assets. B. required reserves. C. actual reserves. D. net worth.
As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies,
A) the M2 money multiplier has fallen from about 9 to about 4. B) the M2 money multiplier more than doubled. C) the monetary base decreased by 50 percent. D) the ratio of currency to M2 deposits more than doubled. E) the reserve requirement ratio increased.