The Fed's margin requirements control
A. the federal funds rate.
B. the amount of reserves banks must keep in cash or in their accounts with the Federal Reserve.
C. the interest rate banks are allowed to pay on demand deposit accounts.
D. how much money people can borrow when they buy stock.
Answer: D
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As interest rates fall, the
A) promised payments of bonds fall. B) face values of bonds fall. C) price of bonds rises. D) price of bonds falls.
After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the
A) "law of supply" does not apply to companies in the "high-tech" sector of the economy. B) "law of demand" does not apply to customers in the "high-tech" sector of the economy. C) supply curve of tablets shifted rightward. D) demand curve for tablets shifted leftward.
Which of the following is not a correct characterization of the U.S. business cycle?
A) Employment is procyclical. B) Consumption is procyclical. C) Real wages are procyclical. D) Prices are procyclical.
The above figure shows the isoquants for producing steel. Constant returns to scale are
A) present when producing less than 10,000 tons. B) present when producing between 10,000 and 20,000 tons. C) present when producing more than 20,000 tons. D) never present.