Which of the following is a function that is performed by the Federal Reserve?
a) To clear checks.
b) To keep inflation high.
c) To keep employment high.
d) To keep interest rates low.
Ans: a) To clear checks.
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The process of making the best of our limited resources by doing the things we are best at and hiring other people to do the things we are not particularly good at is called
A) absolute advantage. B) comparative advantage. C) specialization. D) protectionism.
In a typical year, ________ of new jobs are created by small firms
A) less than 5 percent B) 10 percent C) 40 percent D) 75 percent
Since 1974, commercial banks importance as a source of funds for nonfinancial borrowers
A) has shrunk dramatically, from around 40 percent of total credit advanced to around 25 percent by 2014. B) has shrunk dramatically, from around 70 percent of total credit advanced to below 50 percent by 2014. C) has expanded dramatically, from around 50 percent of total credit advanced to above 70 percent by 2014. D) has expanded dramatically, from around 30 percent of total credit advanced to above 50 percent by 2014.
One of the most serious effects of a banking panic is that
a. banks will not earn as much profit b. banks will no longer be trusted by the public c. people will not place their excess money in banking accounts d. people may lose any accrued interest on their accounts e. large withdrawals of cash lead to a severe decrease in reserves and ultimately in the money supply