If a bank does not have enough reserves to satisfy the reserve requirement, it is likely to do any of the following except
A. Borrow additional reserves in the federal funds market.
B. Buy securities.
C. Borrow from the discount window at the Federal Reserve Bank.
D. Sell securities.
Answer: B
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The willingness to pay for a commodity:
A) decreases as consumption of the commodity increases. B) increases as consumption of the commodity increases. C) is always less than the market price of the commodity. D) is always greater than the market price of the commodity.
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket rises from $20 to $38
A) only three tickets will be sold. B) no one will buy a ticket. C) consumer surplus decreases from $62 to $12. D) consumer surplus increases from $88 to $142.
Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits
A) emotionally B) equitably C) selfishly D) rationally
The slope of the production possibilities frontier is
A) positive. B) negative. C) zero. D) undefined.