Which of the following is the basic economic policy function of the Federal Reserve Banks?
A. Holding the deposits or reserves of commercial banks.
B. Acting as fiscal agents for the federal government.
C. Controlling the supply of money.
D. The collection or clearing of checks among commercial banks.
Ans: C. Controlling the supply of money.
You might also like to view...
"Compared to a competitive market, a single-price monopoly decreases the consumer surplus and increases the economic profit." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Which of the following would cause both the equilibrium price and equilibrium quantity of cookies to decrease?
a. a rise in the price of milk (a complement) b. a rise in consumer incomes c. a rise in the price of cookie dough d. a drop in the price of cookie dough e. a rise in the price of crackers (a substitute)
Most cartels self-destruct because cartel members cheat
Indicate whether the statement is true or false
Privately-owned firms that accept deposits from individuals and businesses and use those deposits to make loans are called:
A. mortgage banks. B. investment banks. C. brokerage firms. D. commercial banks.