Refer to Figure 15-2. In the figure above, the movement from point A to point B in the money market would be caused by
A) an open market sale of Treasury securities by the Federal Reserve.
B) a decrease in real GDP.
C) an increase in the price level.
D) a decrease in the required reserve ratio by the Federal Reserve.
A
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In Exhibit 3-11, in Panel A the movement from point A to point B describes a(n):
A. increase in demand and an increase in the quantity supplied. B. increase in the quantity demanded and an increase in supply. C. decrease in demand and a decrease in the quantity supplied. D. decrease in the quantity demanded and a decrease in supply.
Banks are financial intermediaries, which are institutions that operate between a saver who deposits money in a bank and a ____________ who receives a loan from that bank.
a. lender b. saver c. depositor d. borrower