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27 country minus the total outflow of funds out of a country A. Net Capital Infl

ID: 1125333 • Letter: 2

Question

27 country minus the total outflow of funds out of a country A. Net Capital Inflow B. Net Capital Outflow C. Net Capital Default D. Net Budget Deficit is the total inflow of funds into 28. occurs when a to reduced investment spending A. Over Out B. Upper Out C. Under Out D. Crowding Out 29. One of the three main roles of money is that it is a.- A. Commodity backed money B. Fiat based currency C. Medium of exchange. D. Devalued service item. -- 30. deposits at the Federal Reserve. are the currency banks hold in their vaults plus their A. Bank Buyback B. Bank Reserves C. Currency Swap D. Commodity Holding is the interest rate the Fed charges on loans to 31. The banks A. Prime rate B. Choice rate C. Federal rate D. Discount rate United States overseeing banking and making monetary 32. The Central Bank of the policy is the A. US Bank B. National Bank C. Federal Express D. Federal Reserve

Explanation / Answer

27.
A
It is the net capital inflow coming to the country.


28.
D
It is the crowding out effect that causes less funds available to the private firms and it causes a rise in the interest rates.


29.
C
One of the most important functions of money is to work as a medium of exchange.


30.
B
Bank reserve is the sum of the cash with the Fed and the cash kept in the bank vault. These reserves are on the asset side of the balance sheet.


31.
D
The Fed issuing funds to the banks to meet their emergency requirement is done at a rate that is called the discount rate.


32.
C
The Federal Reserve is the central bank of the USA who looks after the monetary policy and regulates the banking system on behalf of the government.

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