What are the three options available to a bank that needs additional reserves?
What will be an ideal response?
A bank can acquire additional reserves by borrowing from other banks. These reserves are called 'federal funds' and are lent for short periods of time, typically overnight. A bank can also sell securities in the bond market to raise reserves. The third option is to borrow from the Fed, called discounting.
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By the 2000s, an important market change occurred when investment banks became significant participants in the secondary market for
A) corporate bonds. B) currency. C) mortgages. D) Treasury securities.
If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then
a. movies are now relatively cheaper in terms of work hours. b. movies are now relatively more expensive in terms of work hours. c. the relative price of movies has remained constant. d. workers now need to work longer hours to earn one movie ticket.
Why would someone contribute money to a 501(c) group?
A. to make a contribution using someone else's name or under a false identity B. to ensure that the money is used on advertising C. so that the funds would be matched by the federal government D. to avoid having his or her name disclosed as a donor
In the short run, a firm in a monopolistically competitive market operates much like a
a. firm in a perfectly competitive market. b. firm in an oligopoly. c. monopolist. d. monopsonist.