Which of the following is not a function of the Federal Reserve System, or the "Fed"?
A) acting as a lender of last resort
B) acting as a banker's bank
C) performing check clearing services
D) insuring deposits in the banking system
E) taking actions to control the money supply
Answer: D
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The price of a new electronic toy increases from $16 to $24 and the quantity demanded decreases from 1,050 to 950 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:
a. 5.00 b. 4.00 c. 0.75 d. 0.25
Transfer payments
a. are payments that flow from government to households. b. are not made in exchange for currently produced goods or services. c. alter household income, but they do not reflect the economy's production. d. All of the above are correct.
The value of the dollar relative to the euro would increase if
A. the supply of dollars increases and the demand for euros increases. B. the demand for dollars increases and the supply of euros increases. C. the demand for dollars decreases and the supply of euros increases. D. the supply of dollars increases and the demand for euros decreases.
Which one of the following is an example of a financial investment but not an economic investment?
A. A renovation of a shopping mall B. An addition to a petroleum refinery C. Building a new store D. Buying gold to sell later at a higher price