A bank that has no excess reserves
A) cannot create loans.
B) is not in equilibrium.
C) is on the brink of bankruptcy.
D) has no required reserves.
Ans: A) cannot create loans.
Economics
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A central feature of monetary policy strategies in all countries is the use of a nominal variable that monetary policymakers use as an intermediate target to achieve an ultimate goal such as price stability. Such a variable is called a nominal
A) anchor. B) benchmark. C) tether. D) guideline.
Economics
Prices can achieve the rationing function when
A) prices are flexible. B) prices are inflexible. C) they are controlled by the government. D) price controls are in place and ration coupons are used too.
Economics