In which of the following categories would an agreement to buy or sell a certain quantity of a specified currency at a fixed price at a date 30, 60, 90, 120, or 360 days in the future be included?
a. an option
b. a futures contract
c. a forward contract
d. a swap
Ans: c. a forward contract
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Refer to the figure above. What is the equilibrium employment and wage rate after the demand curve shifts to LD2?
A) 20 units of labor and $35 B) 5 units of labor and $15 C) 15 units of labor and $20 D) 10 units of labor and $10
In the figure above, the value on the x-axis increases as we move from
A) point G to point A. B) point C to point A. C) point F to point A. D) point E to point A.
Refer to Table 26-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should A) increase income taxes. B) buy Treasury securities. C) increase the required reserve ratio. D) sell Treasury securities.
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the demand of reserves, ________ the federal funds rate, everything else
held constant. A) decreases; lowering B) increases; lowering C) increases; raising D) decreases; raising