In the market for reserves, a lower interest rate paid on excess reserves
A) decreases the supply of reserves.
B) increases the supply of reserves.
C) decreases the effective floor for the federal funds rate.
D) increases the effective floor for the federal funds rate.
C
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What is the value of a newly issued 10-year bond with face value of $10,000 and no coupon payments? Assume the interest rate is 7 percent (0.07) per year
a. $0 b. $5,083.49 c. $10,000 d. $95,632.41 e. $100,000.00
The frequency of banking panics was greatly reduced when
a. the Federal Reserve was created b. the federal government started insuring banking deposits c. the Federal Reserve increased the required reserve ratio d. the Federal Reserve started using open market operations e. the Federal Reserve decided to take a less active role in controlling the money supply
___________: is the difference between the current market value of a building (or improvement) and the total cost to construct it new. This difference generally increases with building age.
Fill in the blank(s) with the appropriate word(s).
Use the following table to answer the question below. Cloe is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from the consumption of each product are as shown in the following tableNumber of ItemsMarginal Utility of ChocolatesMarginal Utility of Hard Candies160150250140340120430100520806107075508020Based on taste and preference alone, which good does Cloe prefer?
A. One cannot tell from the given data. B. chocolates C. hard candies D. Cloe equally likes chocolates and hard candies.