At the moment, the Federal Reserve keeps the discount rate above the fed funds rate. In so doing, they are
A) discouraging commercial banks from borrowing from the Fed.
B) encouraging commercial banks to borrow from each other.
C) doing both A and B.
D) doing none of the above.
C
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Investment banks are vulnerable because
A) the maturity of their liabilities is less than the maturity of their assets. B) the maturity of their assets is less than the maturity of their liabilities. C) they tend to be underleveraged. D) they tend to primarily hold short-term assets.
The income effect of a wage increase is expected to increase
a. supply of labor. b. supply of goods and services. c. demand for leisure. d. demand for labor.
Which of the following are examples of market signals?
A. extracurricular activities B. education C. warranties D. all of the above
To ensure that ________ will be accepted, the U.S. government implicitly promises the public that it will not print money so fast that it loses its value.
A. commodity money B. barter cash C. paper money D. exchange rates