Which of the following can be most closely controlled by the
Federal Reserve?
a.
Monetary base
b.
Non-borrowed monetary base
A U.S. government budget deficit will increase the U.S. monetary
base if the U.S. Treasury sells bonds to finance the deficit to
a.
the public
b.
commercial banks
c.
the Federal Reserve
d.
All of the above
If the Federal Reserve purchases $100 of securities from
commercial banks, the banks' balance sheet will show a $100
increase in
capital
deposits
reserves
loans
The money multiplier is determined by
a.
the Federal Reserve
b.
commercial banks
c.
the public
d.
All of the above
c.
Currency
d.
M1
Which of the following can be most closely controlled by the Federal Reserve? a. Monetary base b. Non-borrowed m
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