The Fed conducts reverse repurchase agreements with:
A. banks only.
B. the federal government only.
C. banks and financial institutions other than banks.
D. only financial institutions that are not banks, such as the federal government.
Answer: C. banks and financial institutions other than banks.
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The price of peaches goes up and I observe you buying fewer strawberries. Which of the following is consistent with this observation:
A. Strawberries are inferior and peaches are normal. B. Strawberries are normal and peaches are inferior. C. Both strawberries and peaches are inferior. D. Both (a) and (b). E. Both (a) and (c). F. Both (b) and (c). G. All of the above.
A small commercial bank has $10,000 in actual reserves, $60,000 in deposits, and has a 10 percent desired reserve ratio. Its excess reserves are
A) $4,000. B) $10,000. C) $50,000. D) $6,000.
What is meant by "tax incidence"?
What will be an ideal response?
One explanation for the growth in the U.S. economy over the last 100 years is:
A. a large increase in human capital. B. a rapid decline in human capital. C. a small, incremental increase in human capital. D. Human capital was not the cause of growth in the United States over the last 100 years.