When we speak of the Fed's responsibility to supervise member banks, we are saying that the
A) Fed's advisory board will help member banks manage their assets and liabilities.
B) Fed's Open Market Committee will advise member banks regarding the purchase and sale of government securities.
C) Fed's Board of Governors will advise member banks regarding the appropriate interest rates to be charged on various loans.
D) Fed will advise member banks regarding the nature of loans and compliance with regulations.
E) Fed will advise member banks about the proper control of each individual bank's money supply.
D
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Which of the following best describes a nation's Gross Domestic Product?
A) the market value of all goods and services produced in the economy, including intermediate goods B) the market value of all goods and services less depreciation C) the constant dollar value of all goods produced in the economy during a year period D) the total market value of all final goods and services produced in the economy during a year
Jack exported a rare painting illegally. This transaction will:
A) cause the GDP of his country to increase. B) not affect the calculation of his country's GDP. C) cause the GDP of the country he has exported it to increase. D) cause the GDP of his country to decrease.
If we observe an increase in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by
a. an increase in the supply of the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. d. a decrease in the supply of the good.
Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a comparative advantage in the production of copper, then Chile
A. has a lower opportunity cost for copper, which means that it should specialize in production of copper and engage in trade. B. has a lower opportunity cost for producing copper, but specialization is not feasible because Argentina has a lower monetary cost of copper production. C. should continue to produce copper, but only for domestic consumption, because trade is not a viable option. D. has a higher opportunity cost for copper, which means it should specialize in the production of wheat and engage in trade.