The Fed controls bank lending and thus the process of money creation through its power to
A) alter legal reserve requirements and the dollar amount of reserves.
B) establish maximum and minimum interest rates on bank loans and deposits made with banks.
C) oversee the lending criteria banks use.
D) suspend the charter of banks whose lending activities contribute to an excessive rate of increase in the money supply.
A
You might also like to view...
Zero correlation between two variables implies that:
A) change in one variable causes the other to change. B) both variables move in the same direction. C) the variables are not related to each other. D) both variables move in the opposite direction.
What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $2,800 . Profits=$5,600 b. Bundle the goods at $4,000 . Profits=$8,000 c. Charge $2,800 for good 1 and charge $1,700 for good 2; Profits=$4,500 d. Charging the lowest price for each good individually is the best pricing strategy; profits = $7,000