Banks deposit funds at the central bank, because:
a. They are needed for check clearing
b. They need them there in order be able to purchase government securities.
c. Actually, banks do not deposit funds at the central bank. They deposit them at the Treasury.
d. All the above.
.A
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The term "market" in economics refers to
A) a group of buyers and sellers of a product and the arrangement by which they come together to trade. B) a legal institution where exchange can take place. C) an organization which sells goods and services. D) a place where money changes hands.
In the short run, a monopolist will always shut down when
a. total cost is greater than total revenue at all output levels b. total variable cost is greater than fixed cost c. total revenue is greater than total variable cost at all output levels d. fixed cost is greater than total revenue at all output levels e. total variable cost is greater than total revenue at all output levels
A good economic theory is always more useful when it includes detailed facts, even if the facts are not relevant to the questions being investigated
a. True b. False Indicate whether the statement is true or false
A decrease in demand with the supply held constant leads to:
a. an increased equilibrium price and a decreased equilibrium quantity. b. a decreased equilibrium price and a decreased equilibrium quantity. c. an increased equilibrium price and an increased equilibrium quantity. d. a decreased equilibrium price and an increased equilibrium quantity.