Congress established the FOMC because
A) a group was needed to set reserve requirements for member banks.
B) of a lack of coordination among district banks in carrying out open market operations.
C) Congress was attempting to expand its influence within the Federal Reserve System.
D) a group was needed to coordinate the setting of discount rates by the district banks.
B
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Asymmetric information is:
A) information revealed by economic agents turns out to be wrong. B) inflation forecasts are systematically to high or too low. C) some economic agents have more information than others. D) the government knows less about the economy than households and firms.
Which of the following attitudes will be held by a typical firm in a typical cartel?
A. If I alone cheat, I’m better off; if everyone cheats, I’m worse off. B. I can never do better for myself than by following agreed-upon cartel policies. C. If everyone cheats, I’m better off and so is everyone else in the cartel. D. If I suspect others are planning to cheat, I’ll do best for myself by deciding not to cheat.
Financial markets are
A) markets where money is traded between the Fed and economic agents. B) markets where funds accumulated by one group are made available to another group. C) banks interact to lend and borrow reserves. D) the market where capital goods are traded.
In a private placement, a(n) __________ and __________ are sent to prospective investors
A) offering memorandum, term sheet B) registration statement, term sheet C) registration statement, offering prospectus D) offering memorandum, offering prospectus