The federal funds market is the market where
a. the federal government raises funds to cover its budget deficit.
b. the Federal Reserve System makes loans to commercial banks.
c. commercial banks with excess reserves make loans to commercial banks seeking reserves.
d. commercial banks make loans to the Federal Reserve.
C
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Identify the four factors of production, and tell what type of income is earned by each factor
What will be an ideal response?
A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market
a. True b. False Indicate whether the statement is true or false
Suppose that before S1 shifted, a typhoon destroyed a huge shipment of Quality Unlimited HD televisions, thereby reducing the supply of this product in the United States. Considering this scenario, what would be the new position of S2, and how else would this graph change?
a. S2 would shift left of S1, and Q1 would be indeterminate.
b. S2 would shift right of S1, and E2 would move even further down.
c. S2 would shift right of S1, and Q2 would move even further to the right.
d. S2 would shift left of S1, and P2 would be higher than P1.
A legal claim against a firm that usually entitles the owner of the claim to receive a fixed annual coupon payment, plus a lump-sum payment at some future date, is known as
A. a bond. B. a share of preferred stock. C. a reinvestment coupon. D. a share of common stock.