Which of the following statements about the Fed is not true?
a. It serves as the bankers' bank for member banks.
b. It can, and on occasion does, control interest rates.
c. It uses open market operations to control the economy's money supply.
d. It changes the legal reserve requirement less frequently than it changes the discount rate.
e. It changes the legal reserve requirement more frequently than it changes the discount rate.
E
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After taking out a one year loan with an annual interest rate of 10 percent, Tommy pays $3,300 back to the bank. The principal of the loan must be ___________ and the interest payment must be ___________.
A. $3,000; $300 B. $3,300; $300 C. $300; $3,300 D. $300; $3,000
If expectations about the future don't change at all, then an economic downturn will generally:
A. decrease savings at a given interest rate and shift the supply curve for loanable funds to the left. B. increase savings at a given interest rate and shift the supply curve for loanable funds to the left. C. decrease savings at a given interest rate and shift the supply curve for loanable funds to the right. D. increase savings at a given interest rate and shift the supply curve for loanable funds to the right.