Sales of government securities to banks ____ total and excess reserves and ____ the money supply.
A. increase; decrease
B. decrease; increase
C. decrease; decrease
D. increase; increase
C. decrease; decrease
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Which of the following is a correct reason for stating that the United States has a fiduciary monetary system? I. Our money is convertible to a fixed amount of silver or gold. II. Our money has a predictable value
A) I only B) II only C) Both I and II D) Neither I nor II
Suppose your employer offers to match funds you place into a savings plan as long as you purchase the company stock and hold it for at least three years. Which of the following is true?
A) You should not put funds into this plan unless you expect to hold the company stock for at least ten years. B) You should allocate funds into this plan if the company management recommends it. C) It can be attractive to put funds into a plan like this but you should sell your company stock when permitted in order to diversify your portfolio. D) It does not make any sense to put funds into such a plan.
One way that the government encourages the production of a good with positive externalities is to offer
A) an effluent fee. B) a market to pollute. C) a subsidy. D) a pollution tax.