This is an interest rate that one commercial bank pays to another commercial bank
a. federal funds rate
b. prime rate
c. discount rate
d. US Mint rate
Ans: a. federal funds rate
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When a government defaults on its obligations, the event is called a
A) sovereign default. B) magisterial default. C) private default. D) sudden stop default. E) national default.
Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas
Using Lisa's utility function, calculate how many burritos she consumes.
The effect of a government surplus on the equilibrium level of GDP is substantially the same as:
A. a decrease in imports. B. an increase in saving. C. an increase in consumption. D. an increase in investment.
If investors showed less of a preference for investing in war-related companies, then it would be expected that the stock prices for those companies would:
A. Increase, and the rates of return would decrease relative to other companies B. Decrease, and the rates of return would increase relative to other companies C. Decrease, but the rates of return would stay the same relative to other companies D. Decrease, and the rates of return would decrease relative to other companies