A purchase of government bonds from the public by the Federal Reserve Banks
A) adds to the money stock.
B) has the effect of pulling wealth and therefore money out of the private sector.
C) increases the money stock directly and simultaneously increases commercial bank reserves.
D) puts additional reserves into the commercial banking system.
E) reduces the wealth of the public.
C
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To achieve cost-effectiveness among options that satisfy the benefit objective
a. both PVB and PVC must be minimized b. PVB must be minimized and PVC must be maximized c. PVC must be minimized d. none of the above
Which of the following is not counted as part of M1?
a. Coins. b. Federal Reserve notes or " paper money." c. Passbook savings deposits. d. Checkable deposits.
Private car alarm systems with red blinking lights would tend to:
A. redistribute the likelihood of a car theft from those car owners with such a device to those car owners without such a device. B. increase the likelihood of car thefts to all car owners. C. decrease the likelihood of car thefts to all car owners. D. offer a positive externality to those car owners who did not pay for the device.
Fixed exchange rates are often maintained by using all of the following except:
A. Open speculation by individual traders in foreign currency markets B. International monetary reserves held by central banks C. Controls on imports and exports such as tariffs and quotas D. Domestic macroeconomic adjustments using monetary and fiscal policies