1)

The CPI-U:

I. Was implemented to correct supposedly overstated levels of price inflation under the older CPI

II. Only reports the core rate of inflation, which excludes the more volatile food and energy sectors of the U.S. economy

III. Has been cancelled and is no longer being adjusted or reported by the U.S. Department of Labor

a.

I only

b.

I and II only

c.

I and III only

2)

Which of the following statements is true concerning depository institutions today?

I. Depository institutions maintain high levels of reserves

II. The Fed has increased overnight reserve ratio requirements

III. Depository institutions are receiving interest on reserve balances

a.

I only

b.

I and II only

c.

I and III only

d.

I, II, and III

d.

I, II, and III