Which of the following policies is NOT in the Fed's monetary toolbox?
a. Buying government bonds
b. Increasing the quantity of reserves
c. Lending reserves to banks
d. Issuing a bank run
d
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Look at the production schedule below:
Workers 0 1 2 3 4 5 Output 0 45 80 100 130 165 Which property of a standard production function does it violate? A) constant returns to scale B) decreasing marginal product of capital C) decreasing marginal product of labor D) production increasing in labor
Loans generally require equal payments over a set period of time.
a. true b. false
The reserve requirement is the tool used least frequently by the Fed because it can cause abrupt changes in the money supply.
a. true b. false
Passage of the Depository Institutions Deregulation and Monetary Control Act of 1980
A. created uniform reserve requirements for all depository financial institutions. B. resulted in an increase in the number of financial institutions in the United States. C. discouraged the formation of big, nationwide, all-purpose financial institutions. D. meant that vault cash would no longer count toward bank reserves.