The amount of money that people wish to hold to use in transactions varies directly with

Suppose that while vacationing in Switzerland, you won 9,375 Swiss francs, which is the equivalent of $8,000. When you return to the United States, you deposit the $8,000 into your checking account

If the required reserve ratio is 15 percent, this would increase your bank's A) assets by $1,200. B) required reserves by $8,000. C) excess reserves by $8,000. D) liabilities by $8,000.

Discretionary monetary policy is defined as policy

A) that is based on the judgments of policymakers. B) for which the markets make all decisions. C) that is pursued regardless of the current state of the economy. D) that responds to a changing economy with predetermined rules. E) for which the policymaker always publicizes the policy as extensively as possible because its effectiveness depends on the public's knowledge of the policy.