What is the primary function of the Federal Reserve System? What are its “tools” to accomplish this function?
What will be an ideal response?
Although the Fed has several other functions, the primary function must be to regulate monetary policy. If the economy is heating up too much, and inflation is a risk, then the Fed must step in and cool things down by shrinking the available money supply. If the economy is lagging and heading into a recession, the Fed should increase the money supply by encouraging borrowing. Its primary tools are: reserve requirement, open-market operations, and the discount rate. The percentage that the bank must keep on hand is the reserve requirement. If the Fed thinks that the economy needs slowing down, it could raise the reserve requirement, which would mean that the bank has less to loan out, and money is tighter. The discount rate is the interest rate that the Fed charges member banks for loans. If the interest rate goes up, then banks must spend more of their funds on interest, and have less to loan out. However, the major effect of the discount rate is psychological, in that it is a good indicator as to how the Fed feels about the economy. Open-market operations are the buying and selling of government securities.
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a. True b. False Indicate whether the statement is true or false
Comet Corporation's liability account balances at June 30, 2013 . included a 1 . percent note payable. The note is dated October 1 . 2011, and carried an original principal amount of $600,000 . The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1 . 2012 . In Comet's June 30, 2013 . balance sheet, what amount
should be reported as Interest Payable for this note? a. $10,000 b. $15,000 c. $30,000 d. $45,000
Which of the following statements is true of the Digital Millennium Copyright Act (DMCA)?
A) It forbids the creation or sale of a device that can crack codes to allow one to copy any kind of software. B) It requires Internet service providers to block distribution of copyrighted material over the Internet. C) It outlawed any distribution of copying or copyrighted material over the Internet, regardless of profit-making intent. D) It declared that parts of computer software, such as the language that humans can read, cannot be copyrighted.
Universities were among some of the first users of the Internet. What was the Internet first called?
A. OPT B. WWO C. HTML D. ARPANET