Which of the following is a NOT a tool the Fed uses to change the money supply?

a. The tax rate
b. The reserve ratio
c. Open market operations
d. The discount ratee


Ans: a. The tax rate

Economics

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What would happen to the value of the dollar if prices in the U.S. increased more rapidly relative to prices in other countries?

What will be an ideal response?

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Identify the international organization that makes loans to developing countries

a. The World Bank b. The Federal Reserve c. The World Trade Organization d. The Industrial Development Board e. The Bank of England

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If the reserve ratio is 12 percent, then the money multiplier is

a. 9.3. b. 8.3. c. 7.3. d. 12.

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The Constitution of the United States says nothing about state economic activity.

A. True B. False C. Uncertain

Economics