Question
1) The Federal Reserve can increase high powered money by: Buying assets from the banking system Increasing risk based capial requirements Selling assets to the
1) The Federal Reserve can increase high powered money by:
Buying assets from the banking system | ||
Increasing risk based capial requirements | ||
Selling assets to the banking system | ||
Lowering leverage ratios |
2) Real Interest Rates are currently higher than nominal interest rates.
True/False
3) The yield on 30-year government bonds is currently more than 200 basis points higher than the yield on 1-month treasury bills.
True/False
4) Bank capital protects:
The FDIC, uninsured depositors, creditors, and owners. | ||
The FDIC, uninsured depositors, creditors, and taxpayers. | ||
Tax payers and the Federal Reserve The FDIC and Taxpayers. | ||
Only insured depositors. |
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