The Fed is often considered the bankers' bank because it:
a. demands much more currency than it has available.
b. no longer has a monopoly on printing paper currency.
c. lowers the discount rate in order to restrict the money supply.
d. holds bankers reserves, provides banks with currency and loans, and clears their checks.
e. refuses to uses its power of open market operations when a quorum of state-chartered bankers petitions it.
d
You might also like to view...
In the figure above, consumer surplus at the price that maximizes the profit for an unregulated, single-price monopolist is the area of
A) rectangle 0heb. B) triangle abe. C) triangle eig. D) rectangle 0hgd.
What has been learned since 1973 with regards to the experience with floating exchange rate regime?
What will be an ideal response?
The income—expenditure identity says that
A) Y = C + S + T. B) Y = C + I + G. C) Y = C + I + G + NX. D) Y = C + I + G + NX + CA.
The reason why cleanup costs are lower for a taxes approach than for a direct controls approach is that
a. all firms reduce pollution equally and fairly. b. firms that are able to clean up at lowest cost do so; others don't. c. large polluters clean up the most, which is always lowest cost. d. small polluters clean up the most, which is generally the cheapest.