Recent U.S. budget deficits have arguably been financed by foreigners; if it were not for foreign __________ of Treasury securities, U.S. interest rate would be much __________
A) sales; higher
B) sales; lower
C) purchases; higher
D) purchases; lower
C
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The ability of a commercial bank to increase the money supply is limited by the
A) availability of eligible borrowers and the bank's reserves in relation to legal reserve requirements. B) demand of the public for liquidity. C) eligibility of the bank for currency drafts and its ratio of M2 to M1. D) willingness of customers to withdraw currency for circulation.
Structural unemployment is unemployment caused by:
a. temporary changes in jobs. b. discrimination. c. the time required to match employers and workers. d. a mismatch between worker skills and employer requirements.
What is one of the benefits of FDIC insurance?
a. Banks are more likely to manage their money carefully. b. It provides banks with an attractive place to invest their reserves. c. It drives down the interest rate. d. Banks are more stable, so the money supply is more stable.
Refer to Table 3-40. Italy should specialize in the production of
a. boats and import cars b. cars and import boats c. both goods and imports neither good d. neither good and import both goods