The Federal Reserve's main source of income is
a. fees charged to banks.
b. funds budgeted by Congress.
c. fees charged to the public every time they use an ATM.
d. income from interest on the government securities it owns.
Answer: d. income from interest on the government securities it owns.
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In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory. Economists tend to point out that
A. poaching can be reduced with price supports for ivory. B. the supply of ivory has fallen, leading to an increase in price and reward for poaching. C. burning ivory decreases demand, leading to lower prices and reward for poaching. D. the demand for ivory is higher, leading to an increase in price and reward for poaching. E. burning ivory raises demand, and controlled prices will lead to even greater poaching.
If a nation's budget deficit rises, domestic private investment can remain unchanged through some combination of ________ private saving and ________ importing relative to exporting
A) increased, less B) increased, more C) decreased, less D) decreased, more
According to the World Bank, developing countries greatly outnumber industrial countries
a. True b. False Indicate whether the statement is true or false
If the Fed decides to maintain a fixed euro/dollar exchange rate when they sell euros:
A. there will be pressure on domestic interest rates to increase. B. the domestic money supply will increase. C. they will have to impose capital controls. D. this will increase banking system reserves.