Brian is paid monthly and typically takes $500 of his pay in cash to spend throughout the month, and the rest he leaves in an interest-bearing checking account. With the recent inflation, Brian finds it necessary to go to the bank every week, withdrawing $125 each time, so that his money can earn interest for as long as it can before Brian needs to withdraw it. The added hassle of going to the bank more often in response to inflation is called a:

High concentration measures will understate the extent of competition in a market if

A) the true geographical scope of the market is global rather than national. B) entry into the industry is easy. C) the geographical scope of the market is regional rather than national. D) Both answers A and B are correct.

Suppose that the Fed undertakes an open market purchase of $1 million worth of securities from a bank. If the required reserve ratio is 9%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves?

A) $11.11 million B) $9 million C) $1.09 million D) $90 million