Everything else held constant, when households save less, wealth and the demand for bonds ________ and the bond demand curve shifts ________
A) increase; right
B) increase; left
C) decrease; right
D) decrease; left
D
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Which of the following involves payment of part of the face value or principal prior to maturity?
A) fixed-payment loan B) coupon bond C) discount bond D) simple loan
The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.
With a(n) ________, the government allows the market to determine the exchange rate of a currency.
A. dirty float B. crawling peg C. adjustable peg D. clean float
Refer to the given data. Suppose the Fed wants to reduce the money supply by $200 billion to drive up interest rates and dampen inflation. To accomplish this, it could increase the reserve requirement from 20 percent to:
Answer the question on the basis of the following consolidated balance sheet of the
commercial banking system. Assume that the reserve requirement is 20 percent. All figures
are in billions and each question should be answered independently of changes specified in all
preceding ones.
A. 22 percent.
B. 25 percent.
C. 30 percent.
D. 33 percent.