Which of the following functions are performed by depository institutions?
I. They make long-term loans using short-term deposits, thereby creating liquidity.
II. They efficiently gather funds from a large base of depositors.
III. They concentrate risk.
A) I only
B) II only
C) III only
D) I and II
D
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If the Fed buys U.S. Treasury securities, then this
A) increases reserves, causes banks to reduce their loans, and increases the money supply. B) decreases reserves, causes banks to reduce their loans, and decreases the money supply. C) increases reserves, encourages banks to make more loans, and increases the money supply. D) decreases reserves, causes banks to reduce their loans, and increases the money supply.
The Clean Air Act of 1970 has
a. been ineffective in reducing lead emissions in automobiles b. actually caused an increase in auto emissions c. been fairly successful in reducing auto emissions, especially lead d. been unsuccessful in reducing auto emissions, especially sulfur oxides e. been ineffective in reducing carbon monoxide emissions from autos