The discount rate is the interest rate that
A) commercial banks charge their customers.
B) commercial banks charge each other for the loan of reserves.
C) the Fed charges the government for loans.
D) the Fed charges commercial banks when it loans reserves to the banks.
E) the Fed pays commercial banks on their reserves held at the Fed.
D
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Since most banks have positive gaps and negative duration gaps, an increase in market interest rates will
A) increase bank profits and increase bank capital. B) increase bank profits and decrease bank capital. C) decrease bank profits and increase bank capital. D) decrease bank profits and decrease bank capital.
For the average American, innovation has led to:
a. an average income that is below many countries because of monies spent on R&D b. an average income that is not paralleled anywhere in the world c. an average income that exceeds that of all but the richest countries d. None of the above is correct.