Paying interest on the reserves of commercial banks kept with the central bank allows the Fed to essentially place a floor on the federal funds rate
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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Which of the following is a Eurodollar claim?
A) A U.S.-dollar deposit by a London firm in a Kansas City bank B) A Swiss-franc deposit by a German firm in a Swiss bank C) A U.S.-dollar deposit by a New York firm in a London bank D) A Canadian-dollar deposit by a London firm in a Toronto bank
Economics
The marginal propensity to consume plus the marginal propensity to invest equal one
Indicate whether the statement is true or false
Economics