When the Fed sells bonds, the quantity of reserves in the banking system declines and the money supply decreases.
a. true
b. false
a. true
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One result of a minimum wage is
A) illegal hiring of people at wages below the minimum wage. B) more people with jobs. C) a change in the equilibrium wage. D) lower costs paid by firms. E) fewer people searching for work because they realize that firms have decreased the number of people hired.
A demand curve shows the relationship
a. between income and quantity demanded. b. between price and income. c. between price and quantity demanded. d. among income, price, and quantity demanded.
Which of the following is true if investors expect greater future profits from a company?
A. The price of the company's bonds decreases. B. The current yield on the company's bonds decreases. C. The par value of the company's bonds decreases. D. The demand for the company's bonds decreases.
When the European System of Central Banks uses main refinancing operations, it is similar to the Federal Reserve using
A) dynamic open market operations. B) defensive open market operations. C) discount policy. D) reserve requirements.