A depository institution's profit is derived from the difference between:
a. the interest rate it receives on loans and the rate it receives on investments in government securities.
b. the interest rate it pays on deposits and the rate it receives on loans.
c. its primary deposit and its derivative deposit.
d. its assets and its liabilities.
e. the interest rate it receives on domestic loans and the rate it receives on Eurodollar loans.
b
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Choices that are best for the society as a whole are choices in pursuit of
A) self-interest. B) answering the "how" question. C) answering the "for whom" question. D) the social interest. E) incentives.
Monetarists and new classical economists favor an active role of government in promoting low inflation and economic growth
a. True b. False Indicate whether the statement is true or false
Which of the scenarios best reflects the meaning of the term inflation targeting?
A) A local shopping mall offers an "inflation discount," which compensates for the recent increase in prices, in the hopes of targeting savvy consumers. B) Hoping to reduce inflation to improve public opinion, the Federal Reserve decides to lower interest rates. C) A central bank is expected to achieve a 3% annual inflation rate. D) In anticipation of the upcoming election, the chairman of the Federal Reserve lowers interest rates, hoping to win support for the incumbent president.
Select the graph above that best shows the change in the market specified in the following situation: In the market for leather coats, when leather coats become more fashionable among young consumers.
Graph A Graph B Graph C Graph D