Which of the following statements is correct?
A) Open market purchases are expansionary and open market sales are contractionary.
B) Open market purchases are contractionary and open market sales are expansionary.
C) Both open market purchases and open market sales are expansionary.
D) Both open market purchases and open market sales are contractionary.
A
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Banks, like any other business, face a world of uncertainty and they either make a profit or suffer loss. If the losses become substantial, banks can fail and that occurs when
a. all of their loans are repaid and they cannot loan out their excess reserves b. the legal reserve requirement is raised and they have to curtail the amount of money they can lend c. a large proportion of their loans are not repaid (loans became bad investments) and depositors want more of their demand deposits than the bank has on hand d. excess reserves are greater than required reserves and banks have too much money in their vaults e. interest rates go so high banks are unable to make loans
The United States _____ the highest productivity per worker in the world but also has a _________ work week than other industrialized nations.
A. has; shorter B. has; longer C. does not have; shorter D. does not have; longer