Which of the following is the market where reserves can be borrowed by one bank from another bank for very short periods of time?
A. Commercial paper market.
B. Money market.
C. Foreign exchange market.
D. Federal funds market.
Answer: D
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Which of the following is true regarding pollution charges?
i. They force a polluter to pay a price for its pollution. ii. They are based on the marginal external cost of pollution. iii. The fee that produces the efficient amount of pollution is easily determined. A) i only B) i and ii C) ii and iii D) i, ii, and iii E) i and iii
Which of the following statements is true?
A) In any game, the best response of a player is also her dominant strategy. B) The best response of a player is not always her dominant strategy. C) A prisoners' dilemma game is an example of a zero-sum game. D) A prisoners' dilemma game is an example of an extensive-form game.
The Monetary Control Act of 1980 extended the Fed's authority to:
a. impose required-reserve ratios on all depository institutions. b. control the discount rate. c. control the federal funds rate. d. all of these.
Which of the following goods is an intermediate good?
A) lettuce that a restaurant buys to put on sandwiches B) tires that a car company buys to put on the cars it produces C) a television set that Chi-Mai buys to put in her college dorm room D) a and b E) b and c