The Fed prefers that ________ so that ________
A) banks borrow reserves from each other; banks can monitor each other for credit risk
B) banks borrow reserves from each other; the Fed can monitor banks for credit risk
C) banks borrow reserves from the Fed; banks can monitor each other for credit risk
D) banks borrow reserves from the Fed; the Fed can monitor banks for credit risk
A
You might also like to view...
If consumers' confidence in the economy rises
A) aggregate demand will shift rightward and the price level will rise. B) aggregate demand will shift leftward and the price level will fall. C) aggregate demand will shift rightward and the price level will fall. D) aggregate demand will shift leftward and the price level will rise.
Which of the following is an example of search costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors. B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee
Industrial policies are:
A. government investments in certain industries to encourage growth in those industries. B. favorable tax policies to encourage private domestic investment in certain industries. C. favorable trade policies to encourage private investment in certain industries. D. All of these are true.
It is often reported by financial news reports that higher interest rates reduce automobile sales. If this is true, we can expect
A. fiscal policy to be more effective. B. both fiscal and monetary policy to be more effective. C. monetary policy to be more effective. D. neither fiscal nor monetary policy to be more effective.