Reserve requirements are regulations concerning
a. the amount of deposits banks are allowed to accept.
b. the amount of reserves banks must hold against deposits.
c. the total amount of loans banks are allowed to make.
d. the interest rate at which banks can borrow from the Fed.
e. the number of open market transactions the Fed can perform.
b. the amount of reserves banks must hold against deposits.
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Suppose you have $400 to invest at a nominal interest rate of 5 percent. If the inflation rate is 2 percent, then the real return on your investment is approximately
A) $12. B) $20. C) $28. D) $36.
To say that there is a scarcity of gold means that:
a. gold prices will fall in the future. b. there is not enough gold to satisfy people's demand for it at a zero price. c. there are very few substitutes for gold. d. gold is very expensive. e. the demand for gold is changing.
A perfectly competitive firm's marginal revenue is
a. slightly higher than it's selling price. b. slightly lower than it's selling price. c. higher than selling price when reducing output, lower than selling price when increasing output. d. exactly equal to selling price.
Among the key ingredients that propelled the American economy to emerge as the leading industrial power by the beginning of World War I were
A. the world's first universal public education system. B. a large agricultural surplus. C. entrepreneurial abilities of great industrialists. D. all of the choices are true.