Describe how the euro was created. What are the benefits of the monetary union? What are the costs?
What will be an ideal response?
The European countries unified their currencies to reduce the costs of trading goods and assets. This is beneficial as it reduces transactions costs and because the European economy would rival that of the United States in scope and wealth. The potential costs are that there may be political conflict if countries disagree about monetary policy, or if inflation isn't as stable or low as some countries desire.
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A bank's required reserves are either held as vault cash or:
a. used to purchase Treasury bonds. b. deposited with the Fed. c. invested in the stock market. d. loaned out to other commercial banks.
New editions of college textbooks come out
A. every year regardless of the degree to which new material warrants it. B. in part, because authors and publishers only profit on new sales. C. when the publisher gets the urge. D. when the author gets the urge.