When the Fed buys federal government securities on the open market from commercial banks, over time, the:
A. assets of these banks fall.
B. liabilities of the bank fall.
C. assets of the banks rise.
D. liabilities of the bank rise.
Answer: C
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How and why did Europe set up its single currency?
What will be an ideal response?
Banks prefer __________ hold excess reserves because __________
A) not to; excess reserves earn no interest B) not to; banks are not required to hold them C) to; excess reserves earn interest D) to; banks need them to prevent runs
Efficiency wage theories claim that firms may pay high real wages in order to:
A. avoid the threat of unionization. B. make workers more productive. C. discourage unskilled workers from applying. D. reduce the level of frictional unemployment.
Some countries are much poorer today than other countries because some
What will be an ideal response?