How many Federal Reserve district banks are there in the United States?

A. 48
B. 12
C. 5
D. none of these

Answer: B

Economics

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An increase in real GDP affects the demand for money because

A) tax payments rise because more income is earned. B) there is an inverse relationship between the quantity money demanded and nominal GDP. C) at the higher price level, it takes more dollars to make expenditures. D) when real GDP increases, more money is needed to make expenditures. E) the larger real GDP, the higher the real interest rate.

Economics

Why was the Fed reluctant to rescue insolvent banks?

A) It thought it may lead to moral hazard. B) It thought it may lead to adverse selection. C) It thought they were still liquid. D) It did not think they were insolvent.

Economics