9) when the federal government runs a delicit and 9) The ideral government debt
ID: 1104254 • Letter: 9
Question
9) when the federal government runs a delicit and 9) The ideral government debt when the federal government rans a surplus D) increases; increases b) gold, silver, and paper money. D) traveler's checks 10) In the United States, currency includes A) chocking and savings account deposits. C) paper money and coins in circulation 11) Which of the following is not a tool the Fed uses to manage the money supply? A) setting the discount rate B) setting reserve requirements for deposits in the banking system C) printing currency D) open market operations 12 12) The discount rate is A) the interest rate the Fed charges to banks for loans from the Fed. B) the interest rate the US Treasury pays on Treasury Bills C) the interest rate banks charge their best customers D) the interest rate banks charge each other for overnight loans. 13) bank reserves and _ the m oney supply if banks 13) An increase in the discount rate respond appropriately to the change in the rate. A) decreases; decreases C) decreases; increases B) increases; increases D) increases; decreases 14) 14) The total amount owed by the federal government to the public is the A) fiscal drag. C) net tax revenue B) federal budget deficit D) federal debt. falls 15) 15) Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP below potential real GDP? A) an increase in individual income taxes C) an increase in the supply of money B) a decrease in transfer payments D) an increase in government purchases 16) If the economy is in a recessionary gap,fiscal and/jor monetary policy are likely to be 16) A) contractionary, fiscal, increase taxes C) expansionary, monetary,sell bonds B) contractionary, monetary, buy bonds D) expansionary, fiscal, lower taxes 17) The three main monetary policy tools used by the Federal Reserve to manage the money supply are 17) A) interest rates, tax rates, and government spending. B) open market operations, the exchange rate of the dollar against foreign currencies, and government purchases C) tax rates, govenment purchases, and government transfer payments. D) open market operations, discount policy, and reserve requirements. 18) The current chairperson of the Federal Reserve is 18) A) Ben Bernanke C) Alan Greenspan B) Janet Yellen D) Angela Merkel C-2Explanation / Answer
9) A. Federal govt. Debt increases when the federal govt. Runs a deficit because govt. Has to pay for debt And vice versa
10)C. Currency means coins and paper money in circulation.
11)C. Federal never print new currency for correcting or managing money supply
12)A. Discount rate ia the rate which fed charges for giving loans to other banks
13)D. If discount rate increases then banks responds by more reserves and decreases the money supply or money creation.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.