ECON FINAL

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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Increasing government spending on national defense to replace an outdated naval fleet is: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


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