Which of the following statements is true?
A. Both nominal and real interest rates are procyclical and lagging.
B. Both nominal and real interest rates are procyclical and leading.
C. Nominal interest rates are procyclical and real interest rates are countercyclical.
D. Nominal interest rates are procyclical and real interest rates are acyclical.
Answer: D
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In the foreign exchange market, an increase in the exchange rate leads to
A) an increase in the quantity of dollars demanded and no movement along the demand curve for dollars. B) an increase the quantity of dollars supplied and a movement along the supply curve of dollars. C) an increase the quantity of dollars supplied and no movement along the supply curve of dollars. D) a decrease the quantity of dollars supplied and a movement along the supply curve of dollars. E) an increase in the quantity of dollars demanded and a movement along the demand curve for dollars.
Commercial banks in the United States can be chartered
a. by state governments and the federal government b. only by state governments c. only by the federal government d. only by the nationally chartered bank in Washington, D.C. e. only by the Federal Reserve
If Harun’s taxes are $20,000 when he earns $100,000 and $15,000 when he earns $80,000, then
A. Harun faces a progressive tax. B. Harun faces a regressive tax. C. Harun faces a proportional tax. D. Harun faces a falling marginal tax rates.
Banks destroy money when they:
A. fail to reissue loans that are paid off. B. clear checks against another bank. C. accept deposits of cash into checkable accounts. D. buy government bonds.