The Federal Reserve's primary function is to control the money supply
a. True
b. False
Indicate whether the statement is true or false
True
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Critically evaluate the following statement. "Automobile manufacturers continue to produce cars that are dangerous
Therefore the industry should be considered as a market failure and safety mandates should be imposed by the government to insure that all cars are completely safe."
Answer the question based on the following information on the banking system. Deposits at the central bank = 200 U.S. Government Securities = 600 Checking Deposits = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 230 Borrowing from the central bank = 100 Cash in the Vault = 50 The reserve ratio on transactions deposits = 10% The banking system's excess reserves
equal: a. 80 b. 1,500 c. a multiple of 250 d. 1,450 e. None of the above is correct
A reduction in the required reserve ratio has the instant effect of:
a. Increasing the monetary base. b. Increasing total bank reserves c. Increasing excess reserves. d. Increasing bank shareholders' equity. e. Decreasing bank shareholders' equity.
The supply curve of a perfectly competitive firm is:
A. the marginal cost curve only if price exceeds average total cost. B. nonexistent. C. the average total cost curve only if price exceeds average variable cost. D. the marginal cost curve only if price exceeds average variable cost.