When a bank receives a check drawn on an account from another commercial bank, the bank gains
A) capital equal to the amount of the check.
B) capital equal to the required reserve ratio times the amount of the check.
C) reserves equal to the amount of the check.
D) reserves equal to the required reserve ratio times the amount of the check.
C
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Two reasons for an industrialized country to adopt an exchange-rate targeting regime are if the country ________ conduct successful monetary policy on its own,
and if the country wants to ________ integration of the domestic economy with its neighbors. A) cannot; encourage B) cannot; discourage C) can; encourage D) can; discourage
In the traditional Keynesian model, an increase in current taxes
A) increases disposable income but does not affect consumption. B) decreases both disposable income and consumption. C) decreases disposable income but increases consumption. D) has no effect on either disposable income or consumption.