Multiple Choice
The Fed operates
A) on a balanced budget
B) at a loss,since Federal Reserve notes and member bank deposits earn no interest
C) at a profit,since Federal Reserve notes and bank deposits earn no interest,but government securities and loans to commercial banks do
D) at a profit,since Federal Reserve notes and member bank deposits earn interest
E) at a loss,since Federal Reserve notes and member bank deposits earn interest,but government securities and loans to commercial banks do not
Correct Answer:
Verified
Correct Answer:
Verified
Q217: The largest component of M1 is<br>A)currency<br>B)checkable deposits<br>C)traveler's
Q218: Banks borrow excess reserves from each other
Q219: If you know the required reserve ratio
Q220: The ability to convert a store of
Q221: If the Fed increases the required reserve
Q223: M1 includes currency held in shoeboxes by
Q224: Suppose the required reserve ratio is 0.1
Q225: Which of the following is not money?<br>A)check<br>B)coin<br>C)currency<br>D)debit
Q226: Banks help to overcome the problem of
Q227: The Fed performs all of the following