The federal law that prohibits, among other things, “unfair” competition and created the Federal Trade Commission is the: A) Sherman Act of 1890. B) Clayton Act of 1914. C) Federal Trade Commission Act of 1914. D) Celler-Kefauver Act of 1950. ANSWER C
Date: September 10th, 2020
By looking at aggregate demand via its component parts, we can conclude that the aggregate demand curve is downward sloping because A) a lower inflation rate causes the real interest rate to fall, and stimulates planned investment spending. B) a lower inflation rate causes the real interest rate to rise, and stimulates planned investment spending. […]
Date: September 10th, 2020
In the United States, loans from ________ are far ________ important for corporate finance than are securities markets. A) government agencies; more B) government agencies; less C) financial intermediaries; more D) financial intermediaries; less ANSWER C
Date: September 10th, 2020
The process of indirect finance using financial intermediaries is called A) direct lending. B) financial intermediation. C) resource allocation. D) financial liquidation. ANSWER B
Date: September 10th, 2020
Total reserves minus bank deposits with the Fed equals A) vault cash. B) excess reserves. C) required reserves. D) currency in circulation. ANSWER A
Date: September 10th, 2020
A credible nominal anchor A) can help overcome the time-inconsistency problem by providing an expected constraint on discretionary policy. B) can help to anchor inflation expectations, which leads to smaller fluctuations in inflation. C) is required for a policy rule. D) all of the above. E) both A and B. ANSWER E
Date: September 10th, 2020
Duration analysis involves comparing the average duration of the bank’s ________ to the average duration of its ________. A) securities portfolio; non-deposit liabilities B) assets; liabilities C) loan portfolio; deposit liabilities D) assets; deposit liabilities ANSWER B
Date: September 10th, 2020
Everything else held constant, the vertical section of the supply curve of reserves is shortened when the A) discount rate increases. B) discount rate decreases. C) federal funds rate rises. D) federal funds rate falls. ANSWER B
Date: September 10th, 2020
Reserves are equal to the sum of A) required reserves and excess reserves. B) required reserves and vault cash reserves. C) excess reserves and vault cash reserves. D) vault cash reserves and total reserves. ANSWER A
Date: September 10th, 2020
The view that expectations change relatively slowly over time in response to new information is known in economics as A) rational expectations. B) irrational expectations. C) slow-response expectations. D) adaptive expectations. ANSWER D
Date: September 10th, 2020
