The federal funds rate is the
a. percentage of face value that the Federal Reserve is willing to pay for Treasury Securities.
b. percentage of deposits that banks must hold as reserves.
c. interest rate at which the Federal Reserve makes short-term loans to banks.
d. interest rate at which banks lend reserves to each other overnight.
d
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A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside) the production possibilities curve.
In order to build a table, a furniture company buys $50 worth of wood from a lumber company and $20 worth of hardware from a metal products firm. If the value added by the furniture company is $200, what price would the table sell for according to the value added approach to GDP?
a. $130 b. $150 c. $180 d. $200 e. $270
If the government of a country decides to increase the required reserve ratio from 10 to 12.5 percent, the value of the money multiplier will: decrease from 10 to 8. a. increase from 1.0 to 1.2. b. decrease from 10 to 8
c. increase from 10 to 12. d. decrease from 12 to 10.
A game in which all the players are worse off at the end of the game is a
A) negative-sum game. B) dominant strategy game. C) positive-sum game. D) noncooperative game.