Banks hold some deposits on reserve at the Fed because
A. the Fed requires every bank to hold at least $100 million on deposit at all times.
B. the Fed will insure those deposits, but will not insure regular bank deposits.
C. these deposits meet the reserve requirements of the Fed.
D. these are membership dues for being a member bank.
Answer: C
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Which of the following will cause a reduction in the amount of money individuals wish to hold?
A) an increase in income B) an increase in the interest rate C) an increase in the price level D) all of the above
Assume the Fed wants to lower the interest rate. How does the Fed lower the interest rate in the short run?
What will be an ideal response?
Which form of business has most of the characteristics of a regular corporation but adds the legal constraint that the company has to follow a specified nonfinancial? goal?
A. Private corporation B. S corporation C. Limited liability corporation D. Benefit corporation E. General partnership corporation
The market will be in equilibrium if ________ is set ________ the equilibrium price.
A. actual price; below B. actual price; above C. a price ceiling; below D. a price floor; below