The federal funds rate is the interest rate:
a. On U.S. interbank loans.
b. The Federal Reserve changes banks that borrow from it.
c. The World Bank charges to central banks.
d. Central banks charge individuals.
e. U.S. financial institutions pay to their best (i.e., largest) depositors.
.A
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A consequence of imposing a price floor is that
a. the new price (or price floor) is below the old equilibrium price b. an excess supply of the good is created at the floor price c. an excess demand for the good is created at the floor price d. the supply of the good decreases e. the demand for the good increases
Which of the following is correct?
a. NCO = NX b. NCO + I = NX c. NX + NCO = Y d. Y = NCO - I
Which of the following is an example of an expansionary monetary policy action?
A. Raising the discount rate B. Selling bonds C. Reducing the reserve requirement D. Lowering the prime rate
An increase in the price of water ski boats is likely to
A. decrease the demand for water skis. B. increase the demand for water skis. C. decrease the demand for water ski boats. D. increase the demand for water ski boats.