Refer to the graph shown. The economy is in a short-run equilibrium at:
A. point A.
B. point B.
C. point C.
D. no point in the graph.
Answer: A
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Institutions that channel funds from suppliers of financial capital to users of financial capital are referred to as:
A) deposit insurance committees. B) financial intermediaries. C) central banks. D) mutual funds.
Which of the following institutions within the Federal Reserve System determines how many government securities the Fed should buy or sell on a given day?
A) the Federal Reserve Bank of Chicago's Board of Trade. B) the Board of Governors. C) Federal Advisory Committee. D) the Federal Reserve Bank of New York's Trading Desk.
If prices are held above the equilibrium price:
A) social surplus is maximized. B) all firms incur losses. C) there exists a surplus in the market. D) there exists a shortage in the market.
Which of the following is a disadvantage of the European Monetary Union to member countries?
A. Loss of some national identity B. Greater price transparency C. Greater clout for European consumers D. The expected creation of new reserve currency, the euro