To a bank, a loan the bank has made to its borrowers is classified as
A) an asset.
B) a liability.
C) vault cash.
D) excess reserves.
E) bank capital.
A
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The difference between the interest rate on loans to households and firms and the interest rate on completely safe assets is known as ________
A) the fed funds rate B) the discount rate C) asymmetric information D) the credit spread
The balance of payments is
A) a summary record of the financial transactions of a country's government with foreign governments. B) a summary record of a country's imports and exports of goods with foreign residents and governments. C) a summary record of a country's economic transactions with foreign residents and governments. D) a summary record of a country's purchases and sales of goods and services in the world market.
Decisions to buy or sell securities at the Fed are made by the:
a. Congress. b. Federal Open Market Committee. c. Federal Deposit Insurance Corporation. d. President's Council of Economic Advisors.
If Wanda's income is reduced to zero after she loses her job, her consumption will be ________ and her saving will be ________.
A. greater than zero; greater than zero B. greater than zero; less than zero C. less than zero; greater than zero D. less than zero; less than zero