Author Question: If interest rates in Japan rise and those in the United States do not change, there is A) a ... (Read 172 times)

vicky · **on:** Jun 29, 2018

If interest rates in Japan rise and those in the United States do not change, there is

A) a decrease in the supply of dollars.
B) an increase in the supply of dollars.
C) a downward movement along the supply curve for dollars.
D) None of the above answers is correct.

Question 2

An argument in favor of 100 percent reserve banking is that

A) a bank deposit is owned by the depositor, so the bank has no legal right to lend the deposit to someone else.
B) banks should be allowed to lend deposits in order to increase their profits and strengthen the banking system.
C) unregulated institutions would be riskier than regulated fractional-reserve banks.
D) it would limit the precision of the central bank's control over the quantity of money.