Beginning in 2008, the Fed was allowed to:

A. lend directly to consumers.
B. alter tax rates.
C. pay interest on reserves deposited at Fed banks.
D. require commercial banks to loan a certain percentage of their excess reserves.


C. pay interest on reserves deposited at Fed banks.

Economics

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Bank C promises to pay a compound annual interest rate of 6 percent, while Bank S pays a 10 percent simple annual interest rate on deposits. If you deposit $1,000 in each bank, after 10 years, your deposit in Bank C equals ________, while your deposit in Bank S equals ________.

A. $1,791; $2,000 B. $1,600; $2,594 C. $1,600; $2,000 D. $1,060; $1,100

Economics

In the money market, how is the adjustment to equilibrium brought about in the short run and in the long run?

What will be an ideal response?

Economics

Strictly speaking, corporations do not pay taxes

a. True b. False

Economics

Checks written by the firm and not yet cleared represe

a. payment float b. availability float c. net float d. cash in hand e. none of these

Economics