Which of the following will NOT cause a shift in the demand curve for reserves?
A) Business cycles B) A change in the federal funds rate
C) Changes in deposit base D) Liquidity shocks
B
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Depository institutions are good at minimizing
A) the costs of monitoring borrowers. B) risky borrowers. C) liquidity. D) all of the above.
Charging different prices to different consumers for the same product when the price differences are not due to differences in cost is called arbitrage
Indicate whether the statement is true or false
The expected return on dollar deposits in terms of foreign currency can be written as the ________ of the interest rate on dollar deposits and the expected appreciation of the dollar
A) product B) ratio C) sum D) difference
An example of a flow would be the
A) rate at which water goes down the drain. B) amount of water in a bathtub. C) percentage of pollutants in tap water. D) pressure of water in a pipe.