The basic purpose of imposing legal reserve requirements on commercial banks is to:
A. Assure the liquidity of commercial banks
B. Provide a device through which the credit-creating activities of banks can be controlled
C. Provide a proper ratio between earning and no earning bank assets
D. Provide the central banks with necessary working capital
B. Provide a device through which the credit-creating activities of banks can be controlled
Economics
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If the Fed wants to increase the money supply, it should increase the discount rate.
a. true b. false
Economics
Taco Bell's economists determine that the price elasticity of demand for their tacos is 2.0. So, if Taco Bell raises the price of its tacos by 6.0 percent, the quantity demanded will decrease by ________ percent
A) 2.0 B) 3.0 C) 6.0 D) 12.0
Economics