The rate of interest charged to commercial banks by the Fed for loans is called the ________ rate.
A. federal funds
B. discount
C. prime
D. commercial paper
Answer: B
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Which of the following can people not get at their commercial banks?
A. certificates of deposit B. money market deposit accounts C. money market mutual funds D. time deposits
Which of the following accounts records the change in U.S. official reserves?
A) current account B) capital and financial account C) official settlements account D) none of the above
As described in the text, which of the following statements best describes the strategy of many potato growers since 2005?
A) Growers have worked together to reduce supply and stabilize demand. As a result, equilibrium price has been propped up and allowed farmers to earn what they consider a decent profit. B) Growers have continued to compete vigorously with each other, causing prices and profits to decrease. C) Growers have restricted supply so much that there is now a severe shortage of potatoes in the United States. D) because efforts by potato growers to restrict supply are illegal in the United States, they have focused exclusively on increasing demand to increase their profits.
What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pattern of international trade?
What will be an ideal response?