Any amount that a bank chooses to keep on hand beyond what it is required to is called:
A. extra holdings.
B. excess reserves.
C. federal funds.
D. excess deposits.
Answer: B
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The In the News article "A Sirius Mistake? FCC Approves XM-Sirius Merger" discusses the merger of two satellite radio companies. In some industries, mergers can be economically justified if economies of scale
A. Act as a barrier to entry. B. Increase the total cost of production. C. Lower the average cost of production. D. Result in more product variety.
If it did not increase its target for the federal funds rate, the policy goal the Fed would be promoting is
What will be an ideal response?
An indifference curve represents bundles of goods that a consumer
A) views as equally desirable. B) ranks from most preferred to least preferred. C) refers to any other bundle of goods. D) All of the above.
Which of the following statements is TRUE?
A) At the monopolist's equilibrium, resources are being efficiently allocated. B) With a monopoly, the value to society of the last unit produced is less than it's production cost. C) Monopolists raise the price and restrict production, compared to a competitive situation. D) A monopolist always produces a higher level of output than would be produced if the market were competitive.