All of the following are responsibilities of the Fed EXCEPT: control the monetar

Question

All of the following are responsibilities of the Fed EXCEPT: control the monetary base. mint bills and coins. oversee and regulate the banking system. set the interest (referred to as the discount) rate. Which of the following assets is the MOST liquid? a S50 bill a $50 Amazon.com gift certificate 100 shares of Microsoft stock an economics textbook 8.A bond is considered: an asset that is not part of M1 and M2. M1. M2. a liability that is part of M1 and M2. In the U.S., the institution that is charged with fiscal policy is the: Treasury Department. Commerce Department. U.S. Senate Banking Committee. Federal Reserve The banking crisis of 1907 that preceded the Great Depression and the recent one in 2008 are both caused by: short-run business cycle functuations. lack of investment spending and high unemployment. risky speculation in real estate and in the stock market. low labor productivity in the U.S. combined with a huge trade deficit.

Explanation / Answer

6. B. Mint Bills and coins - It is responsibility of the Department of Treasury and US Mint, not Fed.

7. A. a $50 bill is the most liquid of the given choice. B has an expiry date, C can be sold only on stock exchange and D can be sold only in a second-hand book market.

8. A. an asset that is not part of M1 and M2.

Bonds are not considered part of M1/M2 as they are not considered liquid enough.

9. C. US Senate banking committee

10. C. risky speculation in real estate and in the stock market.

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