The funds being lent in the federal funds market are:
A) reserves at the Fed. B) tax revenue earned by the federal government.
C) bank deposits of domestic households. D) investments of foreign firms.
A
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Who is responsible for U.S. monetary policy?
What will be an ideal response?
As incomes rise, the income elasticity of demand for food
a. falls below one b. becomes equal to one c. rises above one d. remains stable e. cannot be calculated
Which of the following is an example of a fiscal policy?
a. Raising the discount rate b. Reducing the reserve requirement c. Reducing tax rate d. Pegging the currency
Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following EXCEPT:
A. Low transaction costs B. Risk sharing amongst investors C. Highly segmented markets D. High information efficiency