Which of the following describes the "invention" of banking?
A) Clergy in the Renaissance created the banking system to help further the growth of the church.
B) Goldsmiths in the sixteenth century issued gold receipts which entitled its owners to reclaim their gold on demand.
C) The United States government founded the Federal Reserve in 1913.
D) The British Empire created a banking system to fund its exploration of the New World.
E) Members of the New York Stock Exchange founded the Bank of America in the 1700s.
B
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Which of the three central concepts in macroeconomics is cited in the textbook as being linked to crime, mental illness, and suicide?
A) the inflation rate B) the unemployment rate C) productivity growth D) None of the above is cited as being linked to these events.
Suppose the Fed purchases $100 million of U.S. securities from security dealers. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a:
A. $100 million decrease in the money supply. B. $100 million increase in the money supply. C. $200 million increase in the money supply. D. $500 million increase in the money supply.