When we say that one of the functions of the Fed is to be a lender of last resort, we mean that the Fed:
A. provides funds to troubled banks that cannot find any other source of funds.
B. serves as a clearinghouse for interbank payments.
C. sets reserve requirements.
Answer: A. provides funds to troubled banks that cannot find any other source of funds.
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In the circular-flow diagram,
a. firms are buyers in the markets for goods and services. b. households are sellers in the markets for the factors of production. c. firms are sellers in the markets for factors of production and in the markets for goods and services. d. dollars that are spent on goods and services flow directly from firms to households.
Considering foreign exchange transactions:
A. the U.S. dollar is exchanged in roughly 50% of all currency transactions. B. most of these transactions are handled in New York. C. more transactions are handled in London than anywhere else. D. all transactions involve the use of the U.S. dollar.
Which of the following products has the most elastic demand?
A. Coca Cola in 12 oz. cans B. all cola drinks C. all carbonated beverages D. all beverages
There are a number of benefits that usually accompany economic growth. The following are such benefits EXCEPT
A. urban congestion. B. increase in literacy. C. increased expected life-spans. D. political stability.