Name four of the six primary functions of the central bank
The six primary functions of a central bank are:
• to serve as a bankers bank, where members keep cash deposits,
• to perform the transfer function between commercial banks of checks and other funds exchanges,
• to serve as the major bank for the central government,
• to buy and sell foreign currencies and facilitate currency exchange in completing financial transactions,
• to be a lender of last resort,
• to monitor, regulate, and influence economic activity through the monetary system.
You might also like to view...
Rational expectations theory suggests that ________
A) policy announcements can impact behavior B) policy announcements have no impact on behavior C) unannounced policies have no impact on behavior D) the optimal forecast is identical to the announced policy
A causal effect for a single individual
A) can be deduced from the average treatment effect. B) cannot be measured. C) depends on observable variables only. D) is observable since it is used as part of calculating the mean of individual causal effects.
The market price for wallets is $20 . Your technology is such that at your most efficient production point, the average total cost of producing a wallet is $2.50 . Your manager runs into your office and shouts, "Boss! Average costs are rising! Average costs are rising!" To make a profit-maximizing decision, you should:
a. d or e. b. immediately stop production. c. completely ignore your manager. d. ask the manager about the marginal cost. e. ask the manager about the average total cost.
Think of the firms and industries that are familiar to you—how many firms in the industry, what their cost structures may look like—and decide which among them is least likely to be a natural monopoly
a. a professional football franchise in Toledo, Ohio b. a pharmaceutical firm that produces a life-saving drug after 10 years of research investment c. a public utilities firm, such as an electric power company d. a high school in a small rural Kentucky town e. an alternative rock band