Employers can shift payroll taxes by substituting capital for labor

If the market value of what it has lent is less than the market value of what it has borrowed, a financial institution's net worth is ________ and it is ________

A) negative; illiquid and insolvent B) positive; illiquid and insolvent C) negative; insolvent but not necessarily illiquid D) positive; insolvent but not necessarily illiquid E) negative; illiquid but not necessarily insolvent

If the Fed is concerned about a possible recession, it ________ the federal funds rate, which ________ the quantity of reserves and ________ the amount of bank loans

A) raises; increases; increases B) lowers; increases; increases C) raises; decreases; decreases D) lowers; increases; decreases E) lowers; decreases; decreases