The Federal Open Market Committee (FOMC) of the Federal Reserve System is primarily for
A. issuing currency and acting as the fiscal agent for the federal government.
B. maintaining cash reserves that can be used to settle international transactions.
C. setting the Fed's monetary policy and directing the purchase and sale of government securities.
D. supervising banks to make sure that markets are open to all and remain competitive.
Answer: C
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At a level of real disposable income of $1,000, suppose consumption is $2,000. Given this information, we know with certainty that saving equals
A) $2,000. B) $0. C) -$1,000. D) -$2,000.
What is both a necessary and sufficient condition for anything to become money?
A) Metallic backing B) Government fiat C) Acceptability D) A stable price level E) Seignorage
Why do corporate boards of directors sometimes link top managers' compensation to the corporations' stock prices? How might tying compensation too closely to stock prices create an incentive for corporate fraud
What will be an ideal response?
If net exports are negative
A) net foreign investment is positive. B) capital inflows must be less than capital outflows. C) net foreign investment is also negative. D) Both A and B are correct.