A higher discount rate generally decreases excess reserves
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 8A.1. Moving from K0 to K1
A) saving becomes negative. B) capital stock continues to increase. C) depreciation starts to decline. D) economic growth stops.
In a corporation, the managers are the stockholders'
A) principals. B) agents. C) level coordinators. D) incentive system.
Default risk
A) is the probability that a borrower will not pay in full the promised coupon or principal. B) exists only for the bonds of small corporations. C) is also known as market risk. D) is zero for bonds issued by cities and states.
The supply of money increases when the public buys government securities from commercial banks.
Answer the following statement true (T) or false (F)