If the Federal Reserve wants to decrease the money supply, it should:
A. decrease the discount rate.
B. conduct open-market sales.
C. decrease the interest that it pays on reserves.
D. decrease reserve requirements.
Answer: B
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How do the wages in the United States compare to those in northern Europe?
A. U.S. wage rates are higher than those of all northern European nations. B. Northern Europe’s average wage rates are higher. C. U.S. wage rates are higher than those in Germany and the Netherlands. D. They are similar.
The demand for loanable funds
A) increases if wealth increases. B) increases if the expected rate of profit decreases. C) increases in an expansion and decreases in a recession. D) increases if population growth declines. E) decreases in an expansion and increases in a recession.
The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production. These taxes
a. benefit the United States as a whole, because they generate revenue for the government. In addition, because the goods are priced below cost, the taxes do not harm domestic consumers. b. benefit the United States as a whole, because they generate revenue for the government and increase producer surplus. c. harm the United States as a whole, because they reduce consumer surplus by an amount that exceeds the gain in producer surplus and government revenue. d. harm the United States as a whole, because they reduce producer surplus by an amount that exceeds the gain in consumer surplus and government revenue.
The larges10 banks in the United States hold slightly over _______ percent of the total deposits in the 8000 banks in the country.
A. 15 B. 25 C. 40 D. 50