Which of the following is true?
a. A majority of U.S. money, whether M1 or M2, is in the form of legal tender
b. If a bank lends out its excess reserves of $90,000, at the time the loan is made, the money supply will increase by $90,000.
c. Reserve requirements exist primarily to eliminate bank runs.
d. When there are two forms of money available, people prefer to spend the form of money that is more valuable.
b
Economics
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High differentials in interest rates suggest that the financial markets of New England, the Middle Atlantic and the South were not integrated with those of New York City
Indicate whether the statement is true or false
Economics
Assume that the current one-year rate is 3% and the two-year rate is 5%. Given this information, the one-year rate expected one year from now is
A) 5%. B) 6%. C) 7%. D) 9%. E) 12%.
Economics