Banks will hold additional excess reserves when
A. loans to customers look safe and interest rates are high.
B. they anticipate a bank audit.
C. loans to customers look risky and interest rates are low.
D. the economy is booming and there is a large demand for loans.
Answer: C
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A) a reduction in government spending. B) an increase in autonomous spending by consumers. C) a reduction in investment spending by the private sector. D) an increase in Social Security spending by the elderly.
A term to describe one currency in terms of another is
a. Interest rates b. Market price c. Inflation rate d. Exchange rate
For economic purposes in the United States, the working-age population does not include:
A. anyone in the military. B. someone who is 16 and does not want to work. C. someone who is 65. D. anyone without a driver’s license.
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a. True b. False Indicate whether the statement is true or false