A television report states: "The Federal Reserve will lower the discount rate for the fourth time this year." This report indicates that the Federal Reserve is most likely trying to:
A. Reduce inflation
B. Save the banking industry
C. Stimulate the economy
D. Improve the savings rate
C. Stimulate the economy
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An open market operation involves
A) the Federal Reserve's purchase or sale of securities. B) the Federal Reserve's issuance of new stock. C) changing federal income tax rates. D) raising the debt limit of the United States.
The net asset value of an open-end mutual fund is equal to the
A) profits of the fund. B) dividends paid out by the fund. C) market value of the securities held by the fund. D) price-earnings ratio of the fund.
If the Fed responds to an initial increase in aggregate demand by increasing the quantity of money...
What will be an ideal response?
Regulatory trade restrictions:
A. are irrelevant since they are seldom used. B. may be justified depending on the nature of the restriction. C. are always justified. D. are never justified.