Refer to the diagram for the federal funds market. If the quantity of reserves falls from $150 billion to $125 billion, we can expect:
A. the federal funds rate to rise to 4.0 percent.
B. the discount rate to rise to 3.5 percent.
C. the prime interest rate to rise.
D. banks to loan more to each other.
C. the prime interest rate to rise.
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Unemployment that arises when there is a mismatch between the quantity of labor demanded and supplied is referred to as:
A) structural unemployment. B) disguised unemployment. C) frictional unemployment. D) cyclical unemployment.
Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. Which method of allocation best describes the choice to purchase the sets?
A) force B) sharing equally C) command D) majority rule E) lottery
Economic discrimination and prejudice
a. are synonymous. b. must both exist in statistical discrimination. c. often occur together. d. are mutually exclusive.
Excess reserves are
A. Total reserves less required reserves. B. Total reserves less transactions account balances. C. Bank reserves in excess of vault cash. D. Required reserves less demand deposits.