The discount rate
A) is determined by markets forces of demand and supply in the market for bank reserves.
B) is set by the Board of Governors.
C) is determined by investment banks.
D) is determined by market forces of demand and supply in the credit market.
Ans: B) is set by the Board of Governors.
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Hyperinflation is
A) inflation caused by negative growth in the quantity of money. B) inflation at a rate that exceeds 5 percent a month. C) only theoretical and has never occurred in the real world. D) inflation caused by excessive growth in the demand for money. E) inflation at a rate that exceeds 50 percent a month.
Advertising is a ________ cost that is incurred by ________
A) variable; monopolies B) variable; perfectly competitive firms C) fixed; perfectly competitive firms D) fixed; monopolistically competitive firms E) marginal; monopolistically competitive firms
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
What will be an ideal response?
When the wage falls:
A. all workers will work more hours. B. all workers will work fewer hours. C. some workers will work more hours and some workers will work fewer hours, but on average, hours worked will fall. D. some workers will work more hours and some workers will work fewer hours, but we don't know whether average hours will increase or decrease.