Which of the following would likely have the greatest effect on the banking system and its ability to loan money?
A. A change in the discount rate by .25 percentage points.
B. A change in the target for the federal funds rate by .25 percentage points.
C. The purchase of $1,000,000 of federal debt.
D. A change in the reserve ratio by 5 percentage points.
Answer: D
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Which of the following is a microeconomics question?
A) What determines the average price level and inflation? B) How much will be saved and how much will be produced in the entire economy? C) What will the level of economic growth be in the entire economy? D) What factors determine the price of carrots?
Most economists think changes in which type of unemployment affects inflation?
A) frictional unemployment B) cyclical unemployment C) structural unemployment D) natural rate of unemployment
Monetarists believe in all of the following except
a. steady growth in inflation will yield stable output. b. steady growth in the money supply will yield stable output. c. fluctuations in the money supply are responsible for business cycles. d. the Fed should not be involved in trying to stabilize the economy.
Rising prices help control the process of resource depletion by
a. discouraging consumption and waste. b. stimulating more efficient use of the depletable resource. c. encouraging resource-saving innovation. d. doing all of the above.