Which of the following observations is true?
A. State governments are the shareholders of the Fed.
B. The Fed chairman is appointed for a ten-year term.
C. FOMC decisions largely determine short-term interest rates.
D. Member banks proportionately share all of Federal Reserve’s profits.
Answer: C
You might also like to view...
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Credit-driven bubbles ________
A) occur exclusively within the financial sector B) are more likely to be identified by central bank officials than by market participants C) are best contained with a policy of high real interest rates D) are harder to identify than expectations-driven bubbles
The marginal product curve:
A. typically decreases at low levels of input, but increases as input increases. B. cannot be negative, since total output cannot be negative. C. shows how many extra outputs are created with each additional input. D. None of these is true.
Roundabout production occurs when
a. entrepreneurs hire others to work for them, rather than taking the time to produce things themselves b. workers avoid intermediary entrepreneurs and cooperate to produce output themselves c. inefficient technology is used d. producers make capital goods instead of consumption goods e. a company takes time to market shares in the company