When banks hold a large amount of excess reserves, which of the following tools would the Fed most likely use to encourage banks to lend more of these excess reserves?
A. lowering the discount rate
B. making an open market sale
C. lowering the reserve requirement
D. lowering the interest rate it pays to banks on their reserves
Answer: D
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Refer to the graph below, which shows the effect of ________ on the home economy
A) foreign inflation B) domestic inflation C) foreign deflation D) domestic recession E) foreign recession
_____ is an example of human specificity which raises the risks associated with opportunism
a. Car insurance purchased by an individual for his/her favorite car. b. Investment of an employer in company-specific skills. c. Purchasing immovable machines for a particular facility. d. Investment in research and development
The U.S. personal savings rate for the first quarter of 2012 dropped to its lowest level since the start of the recession. Americans stashed away 3.6 percent of personal income in the first quarter, down from 4
2 percent in the fourth quarter and a near-term peak of 6.2 percent in the second quarter of 2009. Which of the following could explain this drop in savings? A) a decrease in wealth from a fall in stock prices B) a rise in the real interest rate C) an increase in disposable income as the job market recovers D) a rise in consumer confidence that their incomes will be higher in the future
Which is distributed more unequally, income or wealth? Why? Which is the better measure?
What will be an ideal response?