Member banks of the Federal Reserve System

A. advise the Fed on monetary policy.
B. are immune from the effects of monetary policy.
C. vote on members of the Board of Governors.
D. have little control over the system they “own.”

Answer: D

Economics

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State and local governments rely on ________ as their primary source of tax receipts

A) personal taxes B) contributions for social insurance C) indirect business taxes D) corporate taxes

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If purchasing power parity holds, the exchange rate (e) can be expressed as a function of the domestic price (P) and the foreign price (P*) as

A) e = P - P*. B) e = P* - P. C) e = P* + P. D) e = P/P*.

Economics