When the Fed lowers the discount rate, it makes it:
a. cheaper for banks to borrow from each other.
b. cheaper for banks to obtain additional reserves by borrowing from the Fed.
c. more difficult for banks to accept deposits.
d. more difficult for banks to extend loans.
b
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Which statement is most accurate with respect to the federal government's land policies in the 19th century?
A. It gave away land, and rarely if ever charged even a token amount per acre. B. It gave away a lot of land and charged a token amount for the rest. C. It gave away no land, but charged only a token amount. D. It charged a fairly substantial amount for the land it sold.
People's best guesses about returns on assets are called
A) expected returns. B) liquidity. C) risk. D) the term structure of returns.
Restrictive covenants
A) generally require that firms use debt finance rather than equity finance. B) generally require that firms use equity finance rather than debt finance. C) put restrictions on the use of borrowed funds. D) were outlawed under the Civil Rights Act of 1964.
Which of the following topics is a macroeconomic subject?
A) a proposed merger between two companies B) the level of sales at a particular department store C) increases in the overall price level of the United States D) the decision of an automobile manufacturer