Which of the following is a function of the Fed?
a. Printing foreign currency
b. Determining the level of government spending
c. Distributing welfare benefits
d. Administrating the Social Security fund
e. Ensuring that banks operate in a sound and prudent manner
e
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If a financial portfolio manager in the U.S. buys British company stocks in the London Stock Exchange, this would result in ________.
A. an increase in the demand for U.S. dollars in the foreign exchange market B. an increase in the supply of British pounds in the foreign exchange market C. no effect on the demand for British pounds in the foreign exchange market D. an increase in the demand for British pounds in the foreign exchange market
If growth in the United States speeds up so that investors believe they can make a bigger profit from U.S. assets, the ________ U.S. dollars will ________
A) demand for; increase B) demand for; decrease C) supply of; increase D) supply of; decrease
In the Keynesian system a drop in investment __________ cause the interest rate to __________
A) will; fall B) will; rise C) does not; rise D) does not necessarily; fall
Suppose the index of leading economic indicators begins to decline for several months. Which of the following economic events will likely follow?
a. A recession. b. Severe inflation. c. Greater employment. d. Higher investment.