Which of the following statements is true?
a. The U.S. Treasury deals in newly issued bonds and the Fed deals in previously issued (second-hand) bonds.
b. The U.S. Treasury deals in previously issued bonds and the Fed deals in newly issued bonds.
c. The U.S. Treasury deals in only newly issued bonds and the Fed deals in both new and second-hand bonds.
d. The U.S. Treasury deals in both new and second-hand bonds and the Fed only deals in second-hand bonds.
e. Both the U.S. Treasury and the Fed deal in both new and second-hand bonds.
A
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Under the Bretton Woods exchange rate system, set up in 1944, which of the following was true?
A) Foreign central banks could sell their dollars to the American government in exchange for gold. B) Americans could sell their dollars to the American government in exchange for gold. C) Americans could sell their dollars to foreign central banks in exchange for gold. D) Americans could sell their dollars to the American government in exchange for silver.
The key link between the twin deficits involves: a. higher interest rates and a stronger dollar
b. lower interest rates and a stronger dollar. c. higher interest rates and a weaker dollar. d. lower interest rates and larger trade deficits e. higher interest rates leading to more exports.
The World Trade Organization (WTO), established in 1995, has which of the following as an objective?
a. support free trade b. eliminate trade subsidies c. establish binding rules to ensure fairness in trade d. All of these.
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is c=40+5q2(squared). Your firm's maximum profits are?