If Federal Reserve notes and coins are $765 billion, and banks' reserves at the Fed are $8 billion, the gold stock is $11 billion, and the Fed owns $725 billion of government securities, what does the monetary base equal?
A) $765 billion
B) $773 billion
C) $776 billion
D) $744 billion
E) $1,509 billion
B
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Usury laws result in banks making less credit available to lower-income households because
A) higher-income households will pay a higher interest rate than lower-income households. B) loans made to higher-income households have no risk. C) loans to lower-income households are riskier than loans to higher-income households. D) the regulated interest rate does not adequately compensate the bank for the risk of the loan to a lower-income household.
Assume that eggnog and cookies are complements. If the price of eggnog goes up, what happens to the demand for cookies?
a. Demand for cookies increases. b. Demand for cookies decreases. c. Demand for cookies remains unchanged. d. The shift in demand will depend on the original price of cookies.