A bank is "loaned up" when
A) legal reserves are zero.
B) excess reserves are zero.
C) primary reserves are zero.
D) required reserves are zero.
Ans: B) excess reserves are zero.
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The shift from wanting to own all to owning only what is needed is an example of a _________________
a. Paradigm shift b. Goal re-evaluation c. Reformation d. Retro-change
If fiscal policy were able to exert a significant impact on the economy during the Great Depression, we would expect
a. an increase in government expenditures and a reduction in budget deficits. b. an increase in government expenditures and an increase in budget deficits. c. a decrease in government expenditures and a reduction in budget deficits. d. a decrease in government expenditures and an increase in budget deficits.
According to the monetarist point of view
A. to avoid inflation, the Federal Reserve should create reserves at the same rate as the velocity of money. B. velocity of money is not constant; therefore, the increase in the money supply should not be constant. C. in the short run, increased unemployment and/or reduced inflation are the result of a reduction in the growth of the money supply. D. in the short run, changes in the money supply can have no effect on output in the economy, only on prices.
When the price of a bond is below the face value, the yield to maturity:
A. will equal the current yield. B. will equal the coupon rate. C. is below the coupon rate. D. will be above the coupon rate.