Modern banks in the United States can keep reserves as:
A. commodity money only.
B. a deposit at the Federal Reserve.
C. gold.
D. in accounts with other banks.
B. a deposit at the Federal Reserve.
You might also like to view...
The natural rate hypothesis suggests that improvements in technology that occur normally during the course of time will lead the economy to the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
The difference between an absolute price and a relative price is that:
a. absolute prices are based on costs of production, relative prices are based on market exchange. b. absolute prices are in terms of currency, relative prices are in terms of another good. c. absolute prices are in terms of another good, relative prices are in terms of currency. d. absolute prices never change, relative prices change with inflation.