Reserve requirements are regulations concerning
a. the amount banks are allowed to borrow from the Fed.
b. the amount of reserves banks must hold against deposits.
c. reserves banks must hold based on the number and type of loans they make.
d. the interest rate at which banks can borrow from the Fed.
b
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In Taylor Rule equation, high value of parameter b indicates that
A) Fed cares more about avoiding recessions and high unemployment than about avoiding inflation. B) Fed cares more about avoiding inflation than about avoiding recessions and high unemployment. C) Fed cares more about avoiding recessions than about avoiding high unemployment. D) Fed cares more about avoiding high unemployment than about avoiding recessions.
Which of the following are criticisms of voucher programs?
a. They do not allow government to exercise enough control over education finance. b. Exclusionary admission standards under a voucher program would be unjust. c. Vouchers might be used at sub-standard schools. d. all of the above e. b and c
Which of the following statements is true?
A) Opportunity cost = explicit cost - implicit cost. B) Total cost = fixed cost + implicit cost. C) Total cost = fixed cost + variable cost. D) Variable cost = wages + salaries + benefits.
The distribution process performed by the price system is not as efficient as the distribution process of central planners.
Answer the following statement true (T) or false (F)