Opportunity cost is best defined as
A) the sum of the dollar values of all alternatives given up when choices are made.
B) the cost of producing the purchased goods.
C) the next highest valued alternative when a choice is made.
D) the dollar price of the purchased item.
C
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Which of the following is an example of a bank's reserves?
A) demand deposits with other banks B) deposits with the Federal Reserve C) Treasury bonds and bills D) state bonds of the state in which the bank is located but not state bonds of other states.
Discount rate policy is ________ tool of the Fed in its attempts to influence ________, and thus the money supply
A) an unnecessary, the reserve-holding ratio B) an unnecessary, high-powered money C) a necessary, the reserve-holding ratio D) a necessary, high-powered money