With a 10% reserve requirement ratio, a $100 deposit into New Bank means that the maximum amount New Bank could lend is

Which of the following is not a tool the Fed uses to manage the money supply?

A) open market operations B) setting the discount rate C) setting reserve requirements for deposits in the banking system D) expanding and contracting deposit insurance

The difference between a private good and a public good is that

A) private goods are government-sponsored goods while public goods are government-inhibited goods. B) externalities are always created in the production process but not in the production of public goods. C) private goods make us happy while public goods do not. D) the exclusion principle applies to a private good but not to a public good.