Assume the Treasury borrows $5 billion from the non-bank public and spends it
The effect on bank reserves is that they will __________ by $5 billion when the Treasury borrows and then bank reserves will __________ by $5 billion when the Treasury spends the money. A) rise; fall
B) fall; rise
C) rise; rise
D) fall; fall
B
Economics
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Cigarettes, Children, and the FDA
Read the press release announcing the FDA's 1996 rule designed to restrict children's access to cigarettes.
Questions:
- Provide a number of reasons justifying government intervention in the economy. Based on your reading of the requirements specified by this rule, which of these reasons applies to this FDA rule?
- Why would cigarette manufacturers have an incentive to target children in their advertising campaigns?
- Why are free samples and the sale of small packages of cigarettes banned by this rule?
Economics
The interest rate that the Fed charges banks for loans to them through the traditional channel is called:
A. The discount rate B. Interest on reserves C. The federal funds rate D. The prime rate
Economics