A surplus in a country's balance of trade occurs whenever the country
A. has money outflows that exceed its money inflows.
B. refrains from trade with OPEC countries.
C. exports more goods than it imports.
D. imports more financial capital than it exports.
C. exports more goods than it imports.
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Why might the Federal Reserve intervene in foreign currency markets?
A) to ensure the safety of overseas investments for private investors B) to maintain a desired exchange rate for the dollar C) to ensure the safety of overseas investments for pension funds D) to ensure the safety of overseas investments for banks
If orders exist in large volume, then the market has
A) depth. B) breadth. C) resiliency. D) None of the above.
Which of the following statements best describes the political control of the Federal Reserve?
a. Policy decisions of the Fed do not require congressional approval, and the president cannot ask for the resignation of a Federal Reserve governor as the president can with cabinet positions. b. Policy decisions of the Fed require congressional approval, but the president cannot ask for the resignation of a Federal Reserve governor as the president can with cabinet positions. c. Policy decisions of the Fed do not require congressional approval, and the president can ask for the resignation of a Federal Reserve governor as the president can with cabinet positions. d. Policy decisions of the Fed require congressional approval, and the president can ask for the resignation of a Federal Reserve governor as the president can with cabinet positions.
If the Federal Reserve unexpectedly increases the money supply, which of the following will most likely happen in the short run?
a. real GDP will rise. b. real GDP will fall. c. real interest rates will rise. d. the budget deficit will rise.