If a bank receives a $5 million discount loan from the Fed, then the bank's reserves will
A) increase by $5 million.
B) increase by more than $5 million.
C) increase by less than $5 million.
D) not change.
A
You might also like to view...
Which of the following is true? When there are no externalities, public goods, common resources, taxes or subsidies, then
i. allocative efficiency occurs when marginal benefit exceeds marginal cost by as much as possible. ii. an a competitive equilibrium, resource allocation is efficient. iii. fair rules require income transfers from the rich to the poor. A) only ii B) only i C) only iii D) i and ii E) i and iii
Banks that actively manage liabilities will most likely meet a reserve shortfall by
A) calling in loans. B) borrowing federal funds. C) selling municipal bonds. D) seeking new deposits.
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly and Happy Cleaners has a lower cost of production than Sparkle Cleaners, in equilibrium, Happy Cleaners will produce ________ than Sparkle Cleaners and earn an economic profit that is ________ Sparkle Cleaners.
A) less; more than B) less; the same as C) more; more than D) more; the same as
How were unions affected by the Landrum-Griffen Act of 1959?
a. It established their right to bargain collectively. b. It ended labor unions among federal workers. c. It gave unions greater freedom to conduct union elections. d. It increased government oversight of finances.