Four banks are offering the same interest rate of 4%. Where do you invest?
A) Bank A compounds interest on a yearly basis.
B) Bank B compounds interest on a monthly basis.
C) Bank C compounds interest on a daily basis.
D) I am indifferent between banks.
C
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Which of the following is a permanent member of the Federal Open Market Committee?
A) President of the New York Federal Reserve Bank B) President of the Washington, D.C. Federal Reserve Bank C) Comptroller of the Currency D) Secretary of the Treasury
Following the financial crisis of 2007-2009, banks had a glut of excess reserves. Because of this extraordinary amount of excess reserves being held by banks, the Fed's draining some of them through open market sales of Treasury securities would
A) raise interest rates. B) have no effect on interest rates. C) lower interest rates. D) generate negative interest rates.