The Fed is often considered the bankers' bank because it
a. demands much more currency than it has available
b. no longer has a monopoly on printing paper currency
c. lowers the discount rate in order to restrict the money supply
d. holds banks' reserves, provides banks with currency and loans, and clears their checks
e. refuses to use its power of open market operations when a quorum of state-chartered bankers petitions it
D
You might also like to view...
According to the circular-flow diagram, if Denny is the owner of a landscaping business and he just received $50 for mowing Mrs. Pendleton's lawn,
a. the $50 represents a cost of production for Denny's firm. b. the $50 represents wages, rent, and profit to Denny's firm. c. Denny acts as a firm who interacted in the markets for factors of production with Mrs. Pendleton. d. Denny acts as a firm who interacted in the markets for goods and services with Mrs. Pendleton.
The primary difference between a monopolistically competitive firm and a monopoly is:
A. only the monopolistically competitive firm is a price taker. B. the ability for competition to enter the market in the long run. C. the ability for competition to enter the market in the short run. D. only the monopolist can set his price equal to demand.