Which of the following statements best describes the Federal Reserve role for ba

Question

Which of the following statements best describes the Federal Reserve role for banks? The Federal Reserve is a bank for banks. The Federal Reserve is the controller of all banks. The Federal Reserve is the auditor for all banks. The Federal Reserve provides money for banks. A federal deficit occurs when federal spending is less than federal revenue federal spending is greater than federal revenue federal borrowing is greater than federal revenue federal revenue is greater than federal borrowing In year one the federal government experienced a deficit of S25 million. This was followed by two years of surpluses of $30 million and $40 million, respectively. However, in year four the federal government again experienced deficit spending of S35 million. If budget surpluses are used to pay down the debt. At the end of these four years, the federal debt would have increased S10 million decreased S10 million increased $20 million stayed the same Fiscal policy uses government spending and transfers to influence the economy uses government spending and taxes to provide more equality of income and wealth uses government spending and taxes to influence the economy uses taxes and transfers to insure economic health is used when policymakers actively change government spending taxation in response to changes in the economy, discretionary fiscal policy nondiscretionary fiscal policy expansionary fiscal policy contractionary fiscal policy

Explanation / Answer

41. The federal reserve is a bank for banks

42. Federal spending is greater than federal revenue.

43. decreased by $10 million

Explanation: ($30 +$40) - ($25+$35) = $10

44. uses government spending and taxes to influence the economy.

45. discretionary fiscal policy

Explanation: Discretionary fiscal policy includes Nnn-mandatory changes in taxation, spending, or other fiscal activities by a government in response to economic events or changes in economic conditions.

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