Excess reserves are the
A) amount of reserves held over what is desired.
B) amount of reserves banks keep in their vaults.
C) amount of reserves a bank holds at the Fed.
D) amount of reserves the Fed requires banks to hold.
E) same as the required reserves.
A
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Beginning in 1970 there was ________ relationship between the household saving rate and the ratio of the net worth to disposable income
A) strong positive B) strong negative C) very weak but positive D) weak but negative
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If you do not use the frequent-flyer coupon to fly to Miami, should you go to Miami?
A. Yes, your benefit is equal to your cost. B. No, because there are no benefits in the trip. C. Yes, your benefit is more than your cost. D. No, your benefit is less than your cost.
A. How much is the tax in the above graph? B. How much of this tax is borne by the buyer and how much is borne by the seller? C. As a result of the tax, by about how much does consumption fall?
The ________ is the interest rate commercial banks pay to the Fed; the ________ is the interest rate commercial banks charge each other for short-term loans.
A. discount rate; federal funds rate B. federal funds rate; discount rate C. nominal interest rate; prime rate of interest D. nominal interest rate; real interest rate