The Federal Reserve System acts as the government's fiscal agent by
A. determining how to finance a deficit.
B. preparing the budget the President presents to Congress every year.
C. providing checking account services for the government.
D. auditing taxpayers.
Answer: C
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For the federal deficit to be lowered
A) the Federal Reserve must reduce the money supply. B) the federal government must decrease its spending and increase net exports. C) the federal government's expenditures must be lower than its tax revenue. D) the Federal Reserve must raise interest rates and lower the required reserve ratio.
The primary difference between an American and European option is:
A) American options must be exercised on the expiration date B) European options must be exercised on the expiration date C) American options may be exercised at any point up until the expiration date D) European options may be exercised at any point up until the expiration date
In the new classical model, stabilization policies
a. cannot affect output and employment in either the short run or the long run. b. affect output and employment only in the short run. c. have no effect on output and employment, even in the short run. d. affect output and employment only in the long run.
Which of the following compose the reserves of a commercial bank?
a. checkable deposits and time deposits b. vault cash and deposits of the bank with the Federal Reserve c. U.S. securities and stock equity d. cash and U.S. securities