When banks hold more reserves than are required, such reserves are called
A) total reserves.
B) required reserves.
C) excess reserves.
D) loan reserves.
Answer: C) excess reserves.
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If the exchange rate falls, the quantity of dollars supplied
A) increases, and there is movement up along the supply curve of dollars. B) increases, and there is movement down along the supply curve of dollars. C) decreases, and there is movement up along the supply curve of dollars. D) does not change. E) decreases, and there is movement down along the supply curve of dollars.
Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the third ice cream cone?
A) $0 B) $0.50 C) $1.50 D) $2.50
The exchange rate for a foreign currency that is determined by supply and demand is
A) a fixed exchange rate. B) a controlled exchange rate. C) a constrained exchange rate. D) a flexible exchange rate.
An economic boom in the United States will tend to cause booms in other countries because as U.S. GDP rises, U.S.
A. tariffs will automatically fall. B. exports will rise. C. imports will rise. D. exports will fall.