In the federal funds market, _____

a. banks make loans to the Fed
b. banks make short-term loans to other banks
c. banks make long-term loans to other banks
d. the Fed makes short-term loans to private borrowers
e. the Fed makes long-term loans to commercial banks

b

Economics

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If transactions costs are high, the economic pie may not be maximized

Indicate whether the statement is true or false

Economics

If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the price elasticity of demand equals

A) 0.5. B) 1.0. C) 2.0. D) 10.0.

Economics