When a household lends money directly to a firm, the firm gives the household a
A. dividend.
B. bond.
C. certificate of investment.
D. share of stock.
Answer: B
You might also like to view...
The multiplier means that an increase in investment results in ________ aggregate expenditure that is ________ the increase in investment
A) increased; the same size as B) increased; smaller than C) decreased; larger than D) decreased; smaller than E) increased; larger than
In the long-run, a monopolist charges the same price as a perfectly competitive firm.
Answer the following statement true (T) or false (F)
During a period of economic depression, such as has existed for a long period in Japan, a profit-oriented bank will act in such a way that
A. dampens the fluctuations. B. makes the depression worse. C. is neutral with respect to the fluctuations. D. is counter-cyclical and stabilizing.
Table 29-1Effects of an open-market transaction on the balance sheets of banks and the fed (in millions of dollars) Banks ? Federal Reserve System ? Assets Liab. Assets Liab. Reserves +$10 ? U.S. Gov’t Bank Reserves U.S. Gov’t ? Sec. +$10 +$10 Securities?$10 ? ? ? ? In Table 29-1, the Federal Reserve System has
A. sold $10 million in government securities to banks, taking payment in cash. B. sold $10 million in government securities to banks, taking payment from the bank’s reserves. C. purchased $10 million in government securities from banks, paying for them with increases in banks’ reserves. D. purchased $10 million in government securities from banks, paying for them with new Federal Reserve notes.