Which of the following people are liquidity providers?
A. Used car salesman
B. Antiques dealer
C. Bank teller
D. All of these are considered liquidity providers.
D. All of these are considered liquidity providers.
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If the Fed wants to reduce bank reserves, it can:
A. Raise the discount rate or buy bonds on the open market. B. Reduce the minimum reserve ratio or sell bonds on the open market. C. Raise the discount rate or sell bonds on the open market. D. Decrease the minimum reserve ratio or reduce the discount rate.
If the supply of good A is perfectly elastic, a decrease in demand will: a. reduce the equilibrium quantity traded, but leave the price unchanged. b. reduce the equilibrium quantity traded, and reduce the price
c. reduce the equilibrium price, but leave the quantity traded unchanged. d. reduce the equilibrium price traded, but increase the quantity traded.