A currency drain occurs when the
A) Fed increases the required reserve ratio.
B) Fed sells U.S. government securities.
C) non-bank public increases its holdings of currency outside the banking system.
D) banks reduce the number of loans they create with their excess reserves.
E) Fed buys U.S. government securities.
C
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A subprime mortgage is: a. a mortgage in which the borrower gets an interest rate below the prime rate. b. a mortgage in which the interest rate is adjustable
c. a mortgage for which the home is valued below its true market value. d. a mortgage in which the borrower has a poor credit rating. e. a mortgage for a home that was in foreclosure.
In the ALCOA Case of 1945, the courts held that:
A. firms that sell more than half of their output overseas are exempt from antitrust legislation. B. retail and wholesale firms are exempt from antitrust legislation. C. only contracts and combinations that unreasonably restrain trade are in violation of the Sherman Act. D. the mere possession of monopoly power is a violation of the antitrust laws.
For this question, assume that individuals do not hold currency (i.e., c = 0). The money multiplier is equal to
A) 1/(1-c). B) 1/[c + ?(1 - c)]. C) [c + ?(1 - c)]. D) 1/?. E) none of the above
Answer the following questions true (T) or false (F)
1. Between 1981 and 2015, deaths from cancer have increased in the United States. 2. Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living. 3. Since 1981, deaths from cardiovascular diseases have decreased in the United States.