When the demand for loanable funds rises, the amount of money borrowed will ___________.
A. rise
B. decline
C. be unchanged
A. rise
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To reduce the federal funds rate, the Fed can ________.
A. increase the discount rate B. sell government bonds to commercial banks C. buy government bonds from the public D. increase the reserve ratio
An open market operation occurs when ________ buys or sells securities ________
A) the Federal Reserve System; from or to the federal government B) the Federal Reserve System; in the open market C) a commercial bank; from or to the federal government D) a commercial bank; from or to the public
The struggles and controversies over federal and state powers led to the demise of both the First and Second Bank of the United States
Indicate whether the statement is true or false
What differentiates a savings deposit from a small-denomination certificate of deposit (CD)?
A) A CD has a fixed maturity date; a savings deposit can be withdrawn at any time. B) A savings deposit cannot be withdrawn before its maturity date without incurring a penalty; funds in a CD are available at any time with no interest penalty. C) Only a savings deposit is a time deposit. D) All depository institutions accept savings deposits, whereas only a thrift institution can issue a CD.