Assume the Fed Purchases a Government Security from a Private

question 148

Multiple Choice

Assume the Fed purchases a government security from a private dealer and pays with a Fed check of $100,000. If this check is deposited by the dealer in a bank with a 10 percent required reserve ratio, the bank can extend new loans in the amount of:

• A) $20,000.
• B) $90,000.
• C) $100,000.
• D) $120,000.

Analyze the impact of demand, cost, and industry adjustments on the equilibrium price and quantity in the long run.

Distinguish between constant-cost, increasing-cost, and decreasing-cost industries and their effects on long-run supply.

Recognize the conditions under which long-run equilibrium is achieved in a purely competitive market.

Grasp the concept of resource allocation efficiency in the context of marginal cost and price equality.

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Definitions:

Visual Aids

Tools such as charts, graphs, videos, and models used to enhance the presentation of information by making it more visually appealing and easier to understand.

Cross-cultural

Pertaining to or considering the differences and similarities among various cultures, often to inform practices in global contexts.

Non-verbal Communication

the process of conveying information or expressing thoughts and feelings without using spoken words, through gestures, body language, facial expressions, and other visual cues.

Language Interpreters

Professionals who convert spoken or sign language from one language to another to facilitate communication.