The discount rate is
a. the rate at which public banks lend to other public banks.
b. the rate at which the Fed lends to banks.
c. the percentage difference between the face value of a Treasury bond and what the Fed pays for it.
d. the percentage of deposits banks hold as excess reserves.
b
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A bank has checking deposits of $400, saving deposits of $900, time deposits of $900, loans of $950, government securities of $900, outstanding credit card balances of $400, currency in its vault of $40, and deposits in its reserve account at the Fed
of $40. a. What is the amount of this bank's deposits that are in M1? b. What is the amount of this bank's deposits that are in M2? c. What is the amount of this bank's reserves?
If a local fishing club spends time each year cleaning up local streams by removing trash thrown by motorists, efficiency would be improved if
A) motorists were fined and fishing club activities were taxed. B) the fishing club's activities were subsidized. C) the fishing club was taxed. D) motorists were subsidized.
Which of the following trends would lower the unemployment rate associated with full employment?
a. People become less educated over time. b. More people are willing to move to find a job. c. The government spends money to reduce the loss of jobs during a recession. d. A larger proportion of jobs are seasonal in nature. e. The federal government increases unemployment benefits.
In terms of efficiency, any point on a production possibilities frontier is as good another.
Answer the following statement true (T) or false (F)