The reason for the Fed being set up as an independent agency of government is to:
A. Protect it from political pressure
B. Allow it to earn profits like private firms
C. Make it be managed and controlled by member banks
D. Let it be able to compete with other financial institutions
A. Protect it from political pressure
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Which of the following is NOT a function of the Federal Reserve System?
A) providing for check collection and clearing B) holding deposits of member banks C) supervising member banks D) making loans to college students
How does a monopsonist decide how many workers to hire and what wage rate to pay?
Public choice theory indicates someone who spends more time evaluating which tennis racket to buy than deciding which U.S. Senate candidate to support
a. is behaving irrationally. b. is behaving rationally, given the structure of incentives confronted. c. will likely be responsible for electing the wrong senator. d. is failing to maximize his own personal utility.
Under a fixed exchange rate regime, if a country has an ________ exchange rate, then its central bank's attempt to keep its currency from appreciating will result in a ________ of international reserves
A) undervalued; gain B) undervalued; loss C) overvalued; gain D) overvalued; loss