What tool dictates the amount that banks must keep on deposit at the Federal Reserve? This amount is a certain percentage of the total amount the banks have out in loans.

Why was the SALT I agreement an unsuccessful attempt at arms control?

a) The agreement was too restrictive. The USSR invaded Afghanistan, violating and thereby nullifying the agreement. b) The USSR secretly built up its nuclear weapons. There was no mechanism in place to verify or punish violations, so the U.S. ended up with many fewer weapons. c) It was too narrow in what weapons it limited. As a result, both the U.S. and the USSR ended up with more expensive, more devastating weapons. d) All of the above

Which of the following is NOT true of the divestment and credit denial campaign of the 1980s?

a. It was seen by South African policy-makers as more alarming than international sanctions as it might lead to diminished access to advanced technology. b. It helped to ensure that the South Africa's foreign debt remained fairly low. c. It was a reaction to a state of emergency imposed in 1985. d. It led to the Comprehensive Anti-Apartheid Act in the United States. e. It was initiated by the United Nations.