When the Fed makes a discount loan, the impact on the Banking System's balance sheet is:
A. an increase in assets and a decrease in liabilities.
B. the same as that of an open market purchase.
C. an increase in liabilities with no change in assets.
D. a decrease in assets and an increase in liabilities.
Answer: B
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Economists usually use the term "recession" to refer to: a. any slowdown in the growth of real GDP
b. zero real GDP growth. c. two or more consecutive quarters of declining real GDP. d. a reduction in nominal GDP lasting more than six months.
Third-party beneficiaries are called
a. polluters b. indirect property owners c. free riders d. recipients of efficient market outcomes e. consumer surplus losers
Each point on the demand curve is
a. demand for the product. b. a quantity demanded at that price. c. the amount that people want to buy. d. the amount people want to buy at different income levels. e. All of the above are correct.
A process is stationary if:
A. any collection of random variables in a sequence is taken and shifted ahead by h time periods; the joint probability distribution changes. B. any collection of random variables in a sequence is taken and shifted ahead by h time periods, the joint probability distribution remains unchanged. C. there is serial correlation between the error terms of successive time periods and the explanatory variables and the error terms have positive covariance. D. there is no serial correlation between the error terms of successive time periods and the explanatory variables and the error terms have positive covariance.