If the reserve requirement is 20 percent and the Fed buys $10,000 worth of Treasury bonds, what is the change in the banks' total reserves?
A) $2,000 B) $20,000 C) $8,000 D) $100,000 E) $10,000
E
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If many banks fail, this is likely to cause a/an
a. increase in the currency-to-deposit ratio. b. increase in the reserves-to-deposit ratio. c. a fall in the currency-to-deposit and reserves-to-deposit ratios. d. both a and b. e. none of the above.
A monopolist is producing at an output level at which MR = $6 and MC = $9. It could increase profits
A) by increasing both output and price. B) by reducing output and by increasing price. C) by reducing both output and price. D) by increasing output and by reducing price.
Oligopolists use advertising as a way of differentiating their products
a. True b. False Indicate whether the statement is true or false
During the 2007-2009 financial crisis which of the following temporarily became the largest component of assets on the Fed's balance sheet:
A. foreign exchange reserves. B. U.S. Treasury securities. C. loans. D. mortgage backed securities.