The Federal Reserve does not target both the money supply and an interest rate because
A) it would be too confusing to Wall Street and would disrupt the financial markets.
B) the Fed cannot achieve a target for both the money supply and an interest rate at the same time.
C) it would be illegal according to the Federal Reserve Act.
D) it would be too easy for Wall Street to determine what policy the Fed is following and this would destabilize the economy.
B
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The function that banks perform by obtaining funds from households, businesses, and governments and lending these funds to other households, businesses, and governments is known as
A) fiscal intermediation. B) financial intermediation. C) lending intermediation. D) liquidity intermediation.
The supply curve for a perfectly competitive firm is the portion of its marginal cost curve that lies above the average variable cost curve
Indicate whether the statement is true or false