Refer to the diagram for the federal funds market. If the federal funds rate rose from 3.5 percent to 4.0 percent, which of the following is the most likely explanation?
A. The Fed sold bonds to banks.
B. The Fed bought bonds from banks.
C. The demand for federal funds fell.
D. The Fed raised the prime interest rate.
A. The Fed sold bonds to banks.
Economics
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Refer to the figure above. Which of the following combinations is unattainable?
A) A B) B C) D D) E
Economics
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is
A) 2.5. B) 1.67. C) 2.0. D) 0.601.
Economics