The Federal Reserve
a. prints money for use by individuals during transactions.
b. is a nation's monetary authority, responsible for controlling the money supply.
c. issues government debt.
d. makes loans and takes deposits from individuals.
e. collects taxes from corporations only while the Treasury Department collects personal income and Social Security taxes.
B
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Over 90 percent of life insurance companies are structured as __________ companies. Over 50 percent of industry assets are controlled by companies structured as __________ companies
A) mutual, mutual B) mutual, stock C) stock, mutual D) stock, stock
One fundamental idea in macroeconomics about inflation is:
A. if all wages rise, then inflation doesn't really affect anyone's purchasing power. B. when all prices rise, inflation occurs and everyone is worse off. C. keeping prices constant is the only way to ensure increasing purchasing power over time. D. if all prices decline, the purchasing power of everyone declines.
Suppose the U.S. government has an annual budget of about $3.03 trillion. Does the U.S. government face the problem of scarcity?
a. No, a government with $3.03 trillion faces no real constraints. b. No, scarcity does not apply to governments. c. Yes, resources are limited even for the U.S. government. d. Yes, although the U.S. government can easily obtain more resources. e. Uncertain-economic theory has no answer to this question.
In a fixed exchange rate system
A. market forces play a role in determining the fixed value of a currency. B. a central bank affects the value of a currency by changing its foreign exchange reserves. C. the International Monetary Fund determines exchange rates. D. market forces and the country's stock of gold determine its exchange rate.