What government agency has the option to purchase government bonds issued by the U.S. Treasury?
A) the IRS B) the Commerce Department
C) the Federal Reserve D) the Congressional Budget Office
C
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Which of the following is FALSE? All the BRICs
A) rank among the world's top 10 in population. B) have been transformed by reforms. C) have become more isolated and focused on domestic issues. D) are among the world's top 11 economies. E) have yet to fully realize their economic potential.
In equilibrium, all traded foods sell at the same price internationally. If the same goods are expressed in their home prices, then the ratio of prices is equal to
A) 1 B) the exchange rate between the two currencies C) the real exchange rate between the two currencies D) none of the above
The components of M2 that are not also in M1:
A. sum to an amount that is smaller than the sum of the components of M1. B. are usable for making payments, but at a greater cost or inconvenience than currency or checks. C. are not usable for making payments. D. pay lower rates of interest than do the components of M1.
When the Fed sells a government security to the public, how does it usually receive payment for the security?
A. By accepting checks on bank accounts B. By drawing money out of circulation C. By decreasing member bank profits not distributed by the Fed D. By decreasing reserves in bank accounts at the Fed