Which of the following are new assets of the Fed as of 2008?
A. U.S. Treasury securities and gold
B. federal agency debt securities and U.S. Treasury securities
C. U.S. Treasury securities and mortgage-backed securities
D. federal agency debt securities and mortgage-backed securities
Answer: D
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What would happen to an economy if the government funded an increase in spending with an equivalent increase in taxes?
What will be an ideal response?
The table above shows a nation's production possibilities frontier. If the nation wants to produce 4 robots and 34 pizzas,
A) the nation will be producing inefficiently. B) the opportunity cost is 9 pizzas. C) it will shift the production possibilities frontier. D) it will be unable to do so because the production point is unattainable. E) the nation will then be producing at a production efficient point.
If the marginal cost of producing a television is constant at $200, then a firm should produce this item
A) as long as the marginal benefit it receives is just equal to or greater than $200. B) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin. C) as long as its marginal cost does not rise. D) until the marginal benefit it receives reaches zero.
Immediately after being collected, taxes are deposited in
A) tax and loan accounts. B) the Federal Reserve Bank of New York. C) Federal Reserve district banks around the country. D) the Congressional Vault.