ECON FINAL
Transaction money demand is determined by:
how much money people are going to spend in a given time period
Changing the money supply can affect
interest rates, thereby changing investment spending
The interest rate used to determine the coupon payments:
is fixed
Increasing government spending on national defense to replace an outdated naval fleet is:
not referred to as fiscal policy
Withdrawals and reducing lending ______ the money supply
reduce
Money market equilibrium occurs where
the money demand curve and the money supply curve interest
Suppose the Fed wants to return the economy back to potential output. To accomplish this, aggregate demand need to decrease by $________ billion
$100
Assume the reserve requirement is 10% . Brian deposits a check for $2,500 at his bank. Excess reserves are $__________.
$2,250 because: 2,500 divided by 10 = 250 2,500 - 250 = 2,250
How much money represents Charles real return on the loan to Joe
$80
As the graph above indicates , the initial short-run equilibrium level of output Y1, is above potential output, Y*. If the Fed were to use monetary policy to move the economy toward potential output, it would have to ________ the money supply shifting the Ms to the __________ . This would _______ interest rates and _______ investment spending. The quantity of investment changes as a result of _______________________. When this occurs, the aggregate __________ shifts to the __________.
- decrease - left - increase - decrease - move the investment up along the investment demand line. - demand - left
As the graph indicates , the initial short-run equilibrium level of output of $200 billion is above potential output. If the Fed were to use monetary policy to move the economy toward potential output, it would have to _______ the money supply shifting the Ms to the _______. To do this the Fed needs to ______ bonds.
- decrease -left -sell
Contractionary Monetary policy
- decreases the money money supply -raises interest rates
A rally in the stock market causes people to want less of their assets as cash and more in stocks and bonds The money_____ will ____ shifting to the _____. At the initial interest rate, a _____ of money occurs,causing the equilibrium interest rate to _____ to a new equilibrium level. This stock market rally______ bonds, causing the price of bonds to _____. This will result in _____ bond yields.
- demand - decrease - left - surplus - fall - increase the demand for - increase - lower
The money you have in your checking account is described as:
- demand deposits - checking account balances - checkable deposits
The members of the Federal Open Market Committee include :
- four presidents from district banks other than New York -the board of governors - the president of the New York Fed
Same as above just the opposite
- increase - right - decrease - increase -move down along the investment demand -demand -right
Transaction money demand is:
- independent of the interest rate - related to the level of nominal GDP
Monetary policy affects:
- interest rates charged paid on savings - interest rates charged on loans - the price of goods , services, and resources
Contractionary fiscal policy:
- is the application of fiscal policy to decrease aggregate demand - involves decreasing government purchases and/or increasing taxes
Expansionary monetary policy can reduce the size of the recession by
- keeping interest rates low -keeping investment spending high
The path to recovery using expansionary fiscal policy involves
- multiple rounds of increased consumer spending - increased government spending
Generally, the Federal Reserve uses three tools to carry out policy
- open market operations - changes in the reserve requirement - changes in the discount rate
The Federal Reserve decides to cut the money supply The money ___ will ____ shifting to the _____. At the initial interest rate, a _____ of money occurs, causing the equilibrium interest rate to_____ to a new equilibrium level. This Federal Reserve action ________ bonds, causing the price of bonds to _____. This will result in _____ bond yields.
- supply -decrease -left -shortage -raise -the money supply , the demand for bonds fall - decrease -higher
When a company borrows money by selling a bond, it specifies the term of the bond:
- the face value - term to maturity -the interest rate
The Federal Reserve operates independently within the government because:
- the federal open market committee meets behind closed doors. - the federal reserve does not rely upon congress to fund its operations. - the president or congress does not order the Federal Reserve to pursue some specific course of action.
The two broad categories of automatic stabilizers are:
- transfer payments - taxes
Suppose the reserve requirement in the United States is 20% If there is a $3 billion decrease in reserves, the money supply will decrease by $________billion.
-$15 billion because 3 * 5 = 15
Suppose the reserve requirement is 0.10. The money multiplier is ________. In order to move the interest rate in the money market to the level needed to provide the correct level of investment, the Fed needs to _____. _____ billion worth of bonds to return the economy to full employment.
-10 - sell bonds to reduce the money supply - 10
Suppose the reserve requirement facing Brian's bank is 20% The bank must keep ________ on reserves This creates ______ in excess reserves The bank can lend __________
-300 -1,200 -1,200
Model Cars Medium exchange? Unit of account? Store of Value? Money?
-No -Maybe -Maybe -No
The graph below shows the initial equilibria in both the federal funds market. Th initial equilibrium federal funds rate is 5%, and the initial rate in the money market is 3%.
-buy -$20 -increase -increase
Which of the following are considered tools of fiscal policy?
-changes in taxes - changes in government spending
The economy heads out of a recession. Wages and incomes rise. The money ______will _______ shifting to the _______. At the initial interest rate, a ________ of money occurs, causing the equilibrium interest rate to ________ to a new equilibrium level.
-demand -increase -right -shortage -rise
Contractionary fiscal policy contracts aggregate demand and contracts output by _________ taxes, _________ government purchases , or some combination of the two.
-increasing taxes -decreasing government purchases
Which of the following will cause investment to fall?
-lower expected returns -higher interest rates
The Federal Reserve System is sometimes referred to as a quasi-governmental agency because:
-members of the Board of Governors are somewhat removed from the political process -it does not rely on the federal government for financial funding of its operations
Silver Medium of exchange ? Unit of account? Store of value? Money?
-no -no -yes -no
The Mona Lisa Medium of exchange? Unit of account? Store of value? Money?
-no -no -yes -no
U.S Treasury bills are :
-payable only at the end of the bill's maturity date - issued for less than one year
If you believe that the Federal Reserve will soon decrease the money supply, you will want to _____ bonds because you believe they will ________ in value
-sell -decrease
The economy heads out the of a recession. Banks gain confidence in the credit worthiness of their customers , so they increase the amount of loans they make.
-supply - increase - right - surplus - fall - want more stocks and bonds - increase - fall
The money multiplier equals:
1/reserve requirement
If the expenditures multiplier is 4 , for the AD curve to shift enough to return the economy to Y*, investment spending has to change by _______ billion. At this investment level the interest rate would be ________%
- -25% - 5
Which of the following are likely outcomes of an contractionary monetary policy
- a decrease in the money supply - an increase in the interest rate - a reduction in the inflation rate
Which of the following are likely outcomes of an contractionary monetary policy?
- a reduction in the inflation rate - an increase in the interest rate - a decrease in the money supply
Assume the reserve requirement is 0.4. When the Fed buys bonds and adds reserves to the economy, the effect is ________ in the money supply and banks can make______ loans. If the reserve requirement is 0.4, the money multiplier is ____ . This , if the Fed increases reserves by $20 billion, the money supply rises by _____ billion. If we shift the money supply to the right by this amount, we find it intersects the money demand curve at a new interest rate of _______.
- an increase -more -2.5 - $50 billion -2%
The Fed provides banks with financial services by:
- clearing checks - transferring funds - reviving and delivering the currency
Suppose the loan is made at the interest rate you initially calculated, but at the end of the year, inflation turns out to be 1% and not the 2% both Charles and joe were expecting . The real interest rate Charles will receive on the loan is now
5%
Suppose Charles is willing to lend Joe $2,000 for one year, but only if Charles can get a real return of 4% on the loan. Both Charles and joe expect inflation of 2% over the next year The minimum nominal interest Charles will be willing to offer joe is ______%
6% Because 4% + 2% = 6 %
The Board of governors has ___ governors, each serving a ____ - year term
7 , 14 year term
The path to recovery using contractionary fiscal policy involves
A jump start of decreased government spending and decrease in
A decline in real output for at least two consecutive quarters is called
A recession
A change in demand for money and be shown as
A shift in the money demand curve
Which of the following refers to a liquidity trap?
A situation where increasing the money supply does not lower interest rates, due to a flattening of the money demand curve
If someone deposits money into a checking account, the bank's _______ increase.
Assets
Money and bonds are different types of
Assets
When Brian deposits the 1,500 in the bank , how do the bank's assets and liabilities change?
Assets increase by $1,500 Liabilities increase by $1,500
During an expansion, fewer people qualify for Unemployment Compensation. This is an example of ____________
Automatic stabilizers
Which of the following does the Fed carefully monitor?
Bank reserves
The federal funds market is the market for borrowing and lending reserves between _______.
Banks
With fractional reserve banking:
Banks have to keep a fraction of deposits on hand
The Federal Deposit Insurance Corporation allows depositors to get at least some of their deposits back if a bank fails because:
Banks pay insurance to the FDIC, and the FDIC uses those funds to pay back depositors if a bank fails.
In economics that rely on a _____ system, specialization is impossible
Barter
A ______ is a financial agreement that obligates a borrower (such as an individual, firm , or government) to repay the amount borrowed (principle) and interest on a specific date in the future.
Bond
__________ are certificates of debt that usually specify a dollar amount to be repaid , plus interest, at some future date
Bonds
The coins in your coins jar This is _____________.
Both M1 and M2
Interest rates and prices are often determined:
By the amount of money in an economy
Real GDP expenditures is given by:
C+ I + G + NX
Which of the following correctly describe a fiscal policy?
Changes in government purchases and/or taxes designed to achieve full employment and low inflation
The federal funds rate is the interest rate that banks:
Charge one another for borrowing excess reserves from each other
When the actual inflation rate is less than the expected inflation rate, who is better off - Charles or Joe?
Charles
M1 includes _________
Checkable deposits
Action taken by a country's central bank to contract the money supply and raise interest rates with the objective of decreasing real GDP and controlling inflation is known as ________ monetary policy.
Contractionary
Suppose aggregate demand rises. To decrease aggregate demand, we can use ____________ monetary policy.
Contractionary
When aggregate demand rises too much, to decrease aggregate demand we can use ____________ monetary policy
Contractionary
The actions taken by a country's central bank to contract the money supply and raise interest rates is called
Contractionary monetary policy
________ in active circulation includes money in everyone's pockets and is part of ________.
Currency; M1
The idea that the aggregate demand for goods and services is more responsive to contractionary monetary policy than to expansionary monetary policy refers to
Cyclical asymmetry
A(n) ______ in the money supply lower bond prices
Decrease
A(n) ________ in the money supply lower bond prices
Decrease
Suppose that the economy is in a long-run equilibrium at a price level of 100 and full-employment real GDP of $500 billion. A recession occurs resulting from a $100 billion decrease in aggregate demand. In order to restore the economy to full employment, given a MPC of 0.80, taxes would need to:
Decrease by $25 billion
A decrease in aggregate demand will cause the price level to _________ and unemployment to ________ in the short run
Decrease; rise
The federal reserve would need to _______ the money _______
Decrease; supply
At each round of the money-creation process, banks must hold on to some portion of the increase in reserves and can lend out the rest. Every time this lending cycle occurs, the increase in loans _________ .
Decreases
The quantity of reserves in the banking system and the money supply will increase when the Fed ________ the target federal funds rate
Decreases
When government spending decreases, AD
Decreases
An increase in expenditures shifts the aggregate ________ curve to the right.
Demand
In the short run, in order to stimulate aggregate _________ and avoid falling output and prices the government could reduce taxes.
Demand
Some economists argue that fiscal policy is pro-cyclical, because of the stimulus arrives after the economy has recovered, it could cause _________ -__________ inflation.
Demand-pull
Consumers are worried about international events and decide to hold more non-cash assets This will shift the money _______ curve to the _______. There will be an initial _______ of money , which causes interest rates to _______.
Demand; left; surplus; fall
Consumers are more confident about the economy and want to borrow more to buy big ticket items. This will shift the money _______ curve to the _____. There will be an initial _____ of money , which causes interest rates to _______.
Demand; right; shortage; rise
When banks borrow from the Fed , the interest rate that they pay is set by the Fed, and it's called the _________ rate.
Discount
The interest rate at which banks can borrow money directly from the Federal Reserve is called the:
Discount rate
Loans created from borrowed reserves expand the money supply by creating __________ reserves in the banking system
Excess
_____ reserves held as currency earn no interest
Excess
_____________ reserves are equal to total reserves minus reserves.
Excess
Price level and output both increase from a successful ____________ fiscal policy
Expansionary
When aggregate demand falls , to increase aggregate demand we can use _________ monetary policy
Expansionary
When aggregate demand falls too much, to increase aggregate demand we can use __________ monetary policy
Expansionary
________ fiscal policy stimulates aggregate demand and expands output by lowering taxes, increasing government purchases, or some combination of the two.
Expansionary
This policy involves increasing government purchases and/or decreasing taxes
Expansionary fiscal policy
A change in aggregate demand equals the _________ multiplier times the initial change in expenditures
Expenditure
An increase in transfer payments has an effect on the economy similar to:
Explicitly increasing government purchases, which is the active fiscal policy prescription for a country in recession
Net Exports equals
Exports minus imports
Net exports equals
Exports minus imports NX = exports - imports
Actions that involve changing government purchases and taxes are always considered fiscal policy
False
Monetary policy refers to the action of the ______ to influence the supply of money and credit in the U.S. economy.
Fed
When banks in the US need additional currency for customers, they get it from the __________ reserve.
Federal
One of the key interest rates in the economy is called the:
Federal Funds Rate
The interest rate that banks pay one another for borrowing reserves, or federal funds, overnight so they can meet the reserve requirements set by the Federal Reserve is the:
Federal Funds Rate
The interest rate that banks pay in the formal market for overnight loans of federal reserves is called the :
Federal Funds rate
The supply of money in an economy is largely determined by a central monetary authority. In the United States, that authority is the _____________ bank
Federal Reserve
A formal market for overnight loans of federal reserves is the :
Federal funds market
The market for borrowing and lending reserves between banks is the :
Federal funds market
Changes in government purchases and/ or taxes designed to achieve full employment and low inflation is called ________ policy
Fiscal
Changes in government spending and changes in taxes are considered the primary tools of _________ policy
Fiscal
Governments use ________ policy to keep prices stable and encourage economic growth
Fiscal
One of the tools for manipulating the economy in order to smooth the business cycle is _____ policy
Fiscal
Price level and output both decrease from a successful contractionary ______ policy
Fiscal
During a recession, the government passes a law that increases spending on new schools in effort to put people back to work. This is an example of_____________
Fiscal policy
During a severe recession, the government passes a law that changes the requirements to make it easier for people to qualify for Supplemental Nutrition Assistance Program (SNAP) This is an example of ____________
Fiscal policy
During an expansion, the government passes a new law that raised income tax rates. This is an example of _________
Fiscal policy
A reserve requirement specifies the _____ of checkable deposits that a bank must keep on hand.
Fraction
A reserve requirement specifies the _______ of checkable deposits that a bank must keep on hand
Fraction
The level of real GDP produced in an economy when it is operating at the natural rate of unemployment is called
Full-employment GDP
Since 2009, the average interest rate on savings account:
Has decreased
Which of the following will cause investment to fall ?
Higher interest rates; lower expected returns
If money supply increases, people will buy additional assets with:
Higher returns and greater risk
After Congress passes a policy on the infrastructure spending program, it takes three months for the work to begin. This is an example of a(n) ______ lag of fiscal policy.
Implementation
The money you have in your savings account This is ___________.
In M2
Your available credit on your home equity line of credit. This is ___________.
In neither M1 nor M2
The money multiplier is the amount by which a $1 change:
In reserves will change the money supply
A(n) ________ in the money supply raises bond prices
Increase
For both households and firms, a(n) __________ (increase/decrease) in interest rates will result in fewer purchases of new goods and services
Increase
To decrease gross investment, the interest rate must ________.
Increase
Suppose that the economy is in a long-run equilibrium at a price level of 100 and full-employment real GDP of $500 billion. A recession occurs resulting from a $50 billion decrease in aggregate demand.In order to restore the economy to full employment, given a MPC of 0.6, government purchases would need to :
Increase by $20 billion
Suppose that the economy is in long-run equilibrium at a price level of $100 and full-employment real GDP of $600 billion. An expansion occurs resulting from a $80 billion increase in aggregate demand. In order to restore the economy to full employment, given a MPC of 0.80, taxes would need to:
Increase by $20 billion
During the 1970s, inflation _______ faster than the nominal interest rate, meaning real interest rates were __________.
Increased; negative
All else equal, when the money supply ________ interest rates decrease
Increases
Transaction money demand is a vertical line because it is:
Independent of the interest rate
A real interest rate is negative whenever the _________ rate exceeds the ______ interest rate that was set on a loan.
Inflation; nominal
The payment made to agents that lend or save money, expressed as an annualized percentage of the monetary amount lent or saved is called the ________ rate
Interest
________ is the payment made to agents that lend or save money.
Interest
_________ is the payment made to agents that lend or save money
Interest
Federal Open Market Committee This _____ part of the Federal Reserve System
Is
Federal Deposit Insurance Corporation This _____ part of the Federal Reserve System
Is NOT
Federal Financing Bank This ___ part of the Federal Reserve System
Is NOT
The Financial Management Service This _____ part of the Federal Reserve System
Is NOT
General Services Administration This ________ part of the Federal Reserve System
Is not
The interest rate:
Is the price of money
The ________ the reserve requirement, the smaller the money multiplier
Larger
A decrease in expenditures causes the aggregate demand curve to shift to the ____.
Left
The economy is experiencing a full blown recession, but Congress cannot agree on which type of policy to use. This is an example of a(n) _____ lag of fiscal policy
Legislative
Implementation and recognition lags, cyclical asymmetry, and the liquidity trap are all
Limitations to effective monetary policy
A situation where increasing the money supply does not lower interest rates, due to a flattening of the money demand curve refers to a ___________ trap.
Liquidity
When people hold money in a mutual fund, they give up __________ for a higher interest rate
Liquidity
__________ describes how easy it is to convert any asset, like a savings account, into currency you could keep in your pocket.
Liquidity
A change in any one of the components of _______ will directly affect the money supply.
M2
The financial world grew concerned about what would happen to anything running on computer software when the year 2000 came because:
Many software programs used only a two -digit date for the year
The reserve requirement is the ________ percentage of deposits that banks must keep on hand as reserves
Minimum
The reserve requirement is the _________ percentage of deposits that banks must keep on hand as reserves.
Minimum
__________ policy primarily affects the economy by either encouraging or discouraging investment in new capital
Monetary
A country's central bank uses ________ __________ to keep prices stable and encourage economic growth.
Monetary policy
A market in which the demand for and supply of money determine an interest rate, or opportunity cost of holding money balances is called a _____ market
Money
Since we can't use stocks and bonds for daily transactions, people hold some of their savings as _________ instead of putting it all in stocks or bonds
Money
The _______ market is a market in which the demand for and supply of money determine an interest rate, or opportunity cost of holding money balances
Money
When the bank issues you a loan, it is essentially creating:
Money
Which of the following describes a market in which the demand for and supply of money determine an interest rate, or opportunity cost of holding money balances
Money Market
A deposit account that accepts deposits and purchases bonds and commercial debt that pay interest is a :
Money Market Mutual Funds
For every dollar of bonds the Fed buys or sells , the money supply will increase, or decrease, by an amount equal to the:
Money multiplier
Loanable funds refers to
Money that is available in an economy for the private sector and government to borrow
If a bond sells for ________ than the face value, the interest rate the bond pays falls
More
The concept that an additional dollar of expenditures will result in the creation of more than one dollar's worth of real GDP is called the __________ effect.
Multiplier
The money _______ is the amount by which a $1 change in reserves will change the money supply.
Multiplier
A real interest rate is _______ whenever the inflation rate exceeds the nominal interest rate that was set on a loan.
Negative
You can write a check to pay for goods and services. The check itself is:
Not money
The six- month certificate of deposit (CD) you bought in June that will mature in time to pay your December rent This is _________.
Only in M2
When conducting monetary policy, the Fed most often uses:
Open Market Operations
When the Fed buys or sells government securities in the open market to change the money supply it is called:
Open Market Operations
At high interest rates, the _____ cost of borrowing funds rises, so banks will be less willing to borrow reserves
Opportunity
Bond prices and bond yields always move in the _________ direction
Opposite
_________ loans have fallen under much scrutiny because of the high interest rates and fees charged on the loans
Payday
Interest is the :
Payment made to agents that lend or save money.
Identify one reason why expansionary monetary policy might be less effective during a recession
People or businesses are pessimistic because of a recession and are reluctant to spend money
New members are appointed to the Federal Reserve Board of Governors by the :
President and confirmed by the senate
The interest rate banks charge their best customers is the called " _____ rate"
Prime
The ________ interest rate is adjusted for inflation
Real
The interest rate paid to lenders and savers when the expected rate of inflation equals zero is the __________ interest rate
Real
To minimize the effects of _______, the Fed needs to increase the money supply.
Recession
A decline in real output for at least two consecutive quarters is called a(n) ________. A phase of the business cycle characterized by increasing real GDP, income , and employment is called a(n)
Recession; expansion
The economy starts to slow down but it takes months for Congress to recognize there is a full blown recession occurring This is an example of a(n) _____ lag of fiscal policy
Recognition
__________ reserves are the fraction, or portion, of checkable deposits that a bank must keep on hand
Required
The federal funds rate is determined by the supply and demand for borrowed _________.
Reserves
The money multiplier is the amount by which a $1 change in _________ will change the money supply.
Reserves
If consumers increase the amount of spending, aggregate demand shifts to the _______
Right
A "bank _____ " occurs when depositors rush, in mass, to withdraw their funds from a bank.
Run
Accounts that pay interest and can be withdrawn on upon demand are_________ accounts
Saving
When the change in needed reserves is negative, the Fed should _______ bonds equal to the needed decrease in reserves
Sell
Asset money demand is downward-sloping line because it is:
Sensitive to interest rates
A ________ is a situation in which the quantity supplied is less than the quantity demand at the current market price
Shortage
A relatively _______ fraction of the money in an economy is issued by the Federal Reserve; the rest is created by _________.
Small; banks
The actual money multiplier tends to be _______ than the one predicted by the money multiplier equation
Smaller
The money _________ in an economy is largely determined by a central monetary authority
Supply
Banks are concerned about the economic activity and begin to increase their holdings of excess reserves This will shift the money ________ curve to the _______. There will be an initial _________ of money , which causes interest rates to _________
Supply; left; surplus; rise
A ________ is a situation in which the quantity supplied is greater than the quantity demand at the current market price
Surplus
A change in aggregate demand equals the _____ multiplier times the initial change in taxes.
Tax Because, change in AD=Change in Tax * Tax multiplier
A bank can find itself short of the reserve requirement at the end of the day and in a need to borrow reserves from another bank. This could happen because :
The bank allows its account -holders to withdraw their money at the same time
The national banking system is overseen by:
The board of governors, located in Washington, D.C.
Which of the following describes the short-term fluctuations experienced in the economy due to changes in levels of economic activity?
The business cycle
The multiplier effect is:
The concept that an additional dollar of expenditures will result in the creation of more than one dollar's worth of real GDP
The nominal interest rate includes two components:
The expected interest rate of inflation; the real interest rate
____________ in an economy is largely determined by a central monetary authority
The money supply
The money multiplier equals:
The overall change in the money supply/ the initial change in reserves
Your available credit on your home equity line of credit
This is not in either M1 or M2
The money you have in your savings account
This is only in M2
The six-month certificate of deposit (CD) you bought in June that will mature in time to pay your December rent
This is only in M2
The coins in your coin jar
This is part of both M1 and M2
______ money demand is the demand for money to be used to purchase goods and services
Transaction
___________ money demand is related to the level of nominal GDP
Transaction
___________ payments do not require the recipients to produce a good or service to receive the payments
Transfer
The Federal Reserve Chair is so powerful that statements made can affect stocks halfway around the world
True
The first types of money were likely seeds, grains, or shells.
True
The reserves of a bank held as currency earn little to no interest
True
Because the money supply is independent of the interest rate, it is a __________ line .
Vertical
The nominal interest rate equals the real interest rate
When there is no inflation
Graphically, the federal funds market has the federal funds rate on the _____ axis and the quantity of reserves on the ______ axis
Y; X
A U.S. $20 bill Is this a medium of exchange Unit of account Store value Is this money?
Yes to all
Postage stamps in prisons Medium of exchange? Unit of account? Store of value? Money?
Yes to all
If a bond sells for more than the face value, the effective _________ falls.
Yield
The ______ is equal to the net profit earned dividend by the amount invested
Yield
Suppose that the economy is in long-run equilibrium at the price level of 100 and full-employment real GDP of $500 billion. A recession occurs resulting from a $60 billion decrease in aggregate demand. In order to restore the economy to full employment, given a MPC of 0.75, taxes would need to:
[decrease by $20 billion] - answer Because: 60B = change in Taxes (-MPC/1-MPC)
The expenditure multiplier times the initial change in expenditures equals:
a change in aggregate demand
Comparisons of the value of goods relative to everything else are easy when money is used as :
a unit of account
When economists talk about "interest rates " or even "the interest rate " they mean:
all interest rates since interest rates all tend to move in the same direction
Depository Institutions These ______ a formal part of the Federal Reserve System
are NOT
