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Figure 131 in Your Textbook Compares the Returns on Various Investments

question 89

Multiple Choice

Figure 13.1 in your textbook compares the returns on various investments over the period 1951-2010. Which of the following is shown to exceed the inflation rate by the widest margin?


Definitions:

Federal Home Loan Bank Board

A now-defunct U.S. government agency that oversaw the Federal Home Loan Banks, which were created to support home mortgage lending and community investment.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, as dictated by central banking authorities.

Excess Reserves

These are bank reserves held in excess of what is required by regulations, which can be lent out to generate income.

New Loans

Financial amounts borrowed by individuals, businesses, or governments, typically from banks or financial institutions, that have not previously existed in the market.

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