What are reserves? Discuss the various types of reserves used in the U.S. banking system
What will be an ideal response?
Reserves are assets held by a depository institution that are used to meet withdrawal demands. In the U.S. Federal Reserve System, reserves include deposits held by Federal Reserve district banks for depository institutions plus the vault cash in the depository institution. Total reserves are anything that the law allows banks to claim as reserves. Required reserves are the value of reserves the depository institution must hold and excess reserves are the reserves the institution holds in excess of the required reserves.
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According to the Application, what advantages occur as a result of granting ownership of a dwelling to its occupant?
A) increased incentives for property maintenance B) potential increase in the market value of the property C) increased investment in housing repairs D) all of the above
The full-employment level of GDP is
A) endowments. B) long-run aggregate demand. C) long-run aggregate supply. D) economic growth.
If a firm triples all of its inputs and its output doubles, it is said to be experiencing
a. diminishing marginal returns b. increasing marginal returns c. diseconomies of scale d. economies of scale e. constant average costs
The goal of stabilization policy is to stabilize aggregate _____. As a result, stabilization policy will also stabilize _____ and _____
Fill in the blank(s) with correct word