Which of the following is NOT a function of the Fed?
A. acting as government's fiscal agent
B. offering credit and loans to the U.S. public
C. providing a system of check collection and clearing for depository institutions
D. regulating the money supply in the economy
Answer: B
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
How does the aggregate demand curve reflect an increase in aggregate demand?
What will be an ideal response?
A good in the U.S. costs $20 . The same good costs 150 pesos in Mexico. If the nominal exchange rate is 10 pesos per dollar, what is the real exchange rate?
a. 4/3 so the good is more expensive in the U.S. b. 4/3 so the good is more expensive in Mexico c. 3/4 so the good is more expensive in the U.S. d. 3/4 so the good is more expensive in Mexico
Why do banks package loans into securities?
A. To take advantage of tax breaks passed by the federal government as part of stimulus packages. B. The banking regulations require them to do so. C. To spread the risk of default and increase liquidity. D. To get around adhering to current banking regulations.