The ________ is the interest rate commercial banks pay to the Fed; the ________ is the interest rate commercial banks charge each other for short-term loans.
A. nominal interest rate; real interest rate
B. federal funds rate; discount rate
C. nominal interest rate; prime rate of interest
D. discount rate; federal funds rate
Answer: D
You might also like to view...
In the above figure, if household consumption is positively related to household income, then an increase in household income will
A) shift the line rightward. B) shift the line leftward. C) make the line positively sloped. D) cause a movement along the line.
The Secretary of the Treasury
A) serves as Chairman of the Board of Governors. B) serves as a member of the Board of Governors. C) serves as a member of the Federal Open Market Committee. D) does not serve on the Board of Governors.
Refer to Figure e. Brandon and Allie want to go on a date one summer evening. Allie is a Red Sox fan, while Brandon is a Mets fan. Both teams are playing that evening, but not against each other. Each would rather watch their favorite team, but neither can force the other to watch a particular game, and each is willing to suffer through the other's game if it means time together. If Allie watches the Mets, what is Brandon's best response?
A. Brandon should watch the Red Sox.
B. Brandon should watch the Mets.
C. It does not matter which Brandon watches; he is indifferent between the Red Sox and the Mets.
D. Brandon should not consider Allie's choice when making her decision.
Which of the following is closest to the definition of demand?
a. People's willingness to supply goods at specific prices. b. People's willingness to buy goods and services at given prices. c. People's expectations of lower prices of goods and services. d. Producer's expectations of selling more goods. e. The interaction of people's willingness to buy and sell goods.