Explicit functions of the Fed include all the following except:

Refer to the balance sheet above. What is a viable way for Bank of America to acquire central bank reserves and meet its liquidity needs?

Here is the following scenario for a 1 year investment:   Purchase stock: $100 Equity invested: $80 Debt: $10 Interest Payments: $1 (10% interest) Sales price after 1 year: $150   If the leverage ratio were to decrease would the rate of return for the year increase or decrease? Why?

In the 1990s, the price level in New Zealand fell relative to the price level in the United States. If the exchange rate did not change, one would expect that:

Refer to the graph shown. An increase in the demand for European produced goods, services, and assets would shift:

Refer to the graph shown. If an increase in the demand for U.S. produced goods, services, and assets shifts the supply curve to the right:  

Leverage amplifies losses by doing the following:

The key to understanding the money creation process is the fact that:

Suppose we have the following real estate speculation scenario for a 1 year investment: Purchase price of house: $170,000 Equity: $120,000 Debt: $50,000 @10% interest Interest Payments: $5,000   What is the leverage ratio in this scenario? Suppose that real estate prices are increasing. All else being equal, what would happen if the leverage ratio increased?

Suppose we have the following information for 2010: Potential output: $8 trillion Actual output: $6 trillion Actual Deficit: $ 400 billion Tax Rate: 15%   What is the structural deficit in 2010? What could be causing the structural deficit?