"Banks hold 100 percent of their customers' deposits as reserves." Is the previous statement correct or not?
What will be an ideal response?
The statement is incorrect. If banks kept all of their deposits as reserves, banks would earn no profit. So banks keep a fraction of their deposits as reserves.
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A country facing a balance of payments deficit will change the pegged value of its currency; this is called a revaluation
Indicate whether the statement is true or false
The federal funds rate is the interest rate that
A. the government pays on securities that mature in less than a year. B. commercial banks charge their best customers to borrow money. C. the Fed charges commercial banks to borrow reserves. D. commercial banks charge each other for borrowing and lending reserves.
Which of the following sequences accurately describes the evolution of the payments system?
A) barter, coins made of precious metals, paper currency, checks, electronic funds transfers B) barter, coins made of precious metals, checks, paper currency, electronic funds transfers C) barter, checks, paper currency, coins made of precious metals, electronic funds transfers D) barter, checks, paper currency, electronic funds transfers
The proposed GHG controls on stationary sources in the United States
a. recommends the use of permits with no emissions standards b. involve subsidies for the development of new abatement technologies c. include permitting requirements and emissions standards d. recommend significant monetary penalties on power plants releasing GHGs