The Fed purchases 1 million of U.S. government securities from First Bank. The desired reserve ratio is 10 percent, the currency drain ratio is zero, and banks loan all excess reserves.
The Fed's purchase increases First Bank's excess reserves by how much? A) 900,000
B) 1,000,000
C) 1,100,000
D) 10,000,000
E) 100,000
Question 2
Monopolies arise when there are
A) many substitutes but there are no barriers to entry.
B) no close substitutes and there are no barriers to entry.
C) no close substitutes and there are barriers to entry.
D) many substitutes and there barriers to entry.
E) None of the above answers are correct because the existence of a monopoly has nothing to do with the presence or absence of barriers to entry.
Spur-winged Goose - De Hoop Nature Reserve, South Africa
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Bank teller assisting with customer service.