Author Question: The currency drain reduces the amount of A) reserves available to banks to make loans. B) ... (Read 95 times)

segrsyd · **on:** Jun 29, 2018

The currency drain reduces the amount of

A) reserves available to banks to make loans.
B) currency the Fed has outstanding in the economy.
C) currency available for banks to borrow from the Fed.
D) the monetary base.
E) open market operations the Fed can make.

Question 2

Refer to the figure above. The triangular region BEC shows the ________ due to the price ceiling.

A) gain in consumer surplus
B) loss in consumer surplus
C) gain in producer surplus
D) loss in producer surplus