Official reserve assets are
A. government T-bills and T-bonds.
B. government holdings of SDR's.
C. money-like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them.
D. the gold holdings of the country's households and businesses.
Answer: C
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The relationship between education and economic growth can best be summarized by saying that
A) educated people are less apt to consume goods that deplete economic resources, which encourages economic growth. B) educational expenditures tend to divert funds from productive investments, which discourages economic growth. C) educational expenditures tend to be inflationary, which discourages economic growth. D) education has benefits beyond those who receive the education, which encourages economic growth.
People are unlikely to choose to pay extra for a low-emissions automobile, because they:
A. do not fully understand the environmental benefits of lower emissions. B. are better off "free-riding" on others' attempts to reduce emissions. C. would have to sacrifice fuel efficiency and automotive performance. D. cannot afford the extra expense of "green" technology.
Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). This Application illustrates:
A. that U.S. parts manufacturers are now facing increasing global pressures. B. the trade-offs inherent in a global economy. C. how U.S. domestic manufacturers of auto parts have been adversely affected in recent years. D. All of these.
If the Fed purchases $100,000 in government bonds from a bank, then the
A) liabilities of the bank rise by $100,000. B) reserves of the bank fall by $100,000. C) assets of the bank rise by $100,000. D) reserves of the bank rise by $100,000.