Which is potentially the most powerful tool available to the Fed to control the supply of money?
a. open market operations
b. moral suasion
c. changes in reserve requirements
d. discount rate changes
c
You might also like to view...
Which of the following is true? When there are no externalities, public goods, common resources, taxes or subsidies, then
i. allocative efficiency occurs when marginal benefit exceeds marginal cost by as much as possible. ii. an a competitive equilibrium, resource allocation is efficient. iii. fair rules require income transfers from the rich to the poor. A) only ii B) only i C) only iii D) i and ii E) i and iii
Suppose that there is an increase in technology. The classical model predicts that
a. both output and the price level rises. b. output rises and the price level remains the same. c. output rises and the price level falls. d. none of the above.
If a racial group exhibits lower scores on IQ tests, this is evidence of their reduced intelligence
Indicate whether the statement is true or false
The objective of bank management is to
A. maximize stockholders’ profits by making risky investments and giving loans to borrowers who will pay the highest interest rates. B. refuse to make risky loans and make loans only to the safest borrowers. C. invest in the U.S. government securities and make loans only to established businesses. D. strike the appropriate balance between the attraction of bank profits and the need for bank safety.