When a check is drawn and cleared, the
A. reserves and deposits of both the bank against which the check is cleared and the bank
receiving the check are unchanged by this transaction.
B. bank against which the check is cleared loses reserves and deposits equal to the amount
of the check.
C. bank receiving the check loses reserves and deposits equal to the amount of the check.
D. bank against which the check is cleared acquires reserves and deposits equal to the
amount of the check.
B. bank against which the check is cleared loses reserves and deposits equal to the amount
of the check
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Whenever the Fed ________ excess reserves in the banking system, they tend to ________ the overall money supply
A) raises; reduce B) raises; increase C) lowers; increase D) lowers; stabilize
You have a bond that pays $125 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) Coupon payments on newly-issued bonds rise to $140 per year. B) The likelihood that the firm issuing your bond will default on debt increases. C) Coupon payments on newly-issued bonds fall to $75 per year. D) The price of a share of stock in the company falls.
A college education is a(n)
a. investment in human capital. b. form of innovation. c. public good. d. mediated settlement.
The oligopolist ___________ a profit in the long run.
Fill in the blank(s) with the appropriate word(s).