Which of the following is not true of Federal Reserve notes? Ob. They are a liab

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Which of the following is not true of Federal Reserve notes? Ob. They are a liability of the Fed. Od. They are counted as currency in the money supply a. They are redeemable for other Federal Reserve notes c. They are redeemable for gold. . They are fiat money. QUESTION 2 Fiscal policy: ent and prices, but not the level of GDP Ob. is most effective when employed by state governments rather than by the federal government. c. uses the federal government's control over the money supply and interest rates to affect employment, the price level, and GDP d. can affect employment and the level of GDP, but not the price level. Oe. uses the federal government's powers of spending and taxation to affect employment, the price level, and GDP QUESTION 3 The reserve ratio is the ratio of O a. Federal Reserve member banks to all U.S banks. Ob. a bank's reserves to its total deposits. Oc. Federal Reserve member banks to nonmember banks. a bank's total deposits to its reserves. e. Federal Reserve nonmember banks to member banks. QUESTION 4 Save All Answers

Explanation / Answer

Ans)

1.
They are redeemable for gold.
The notes are backed by gold not reedemable for it.

2.
e. uses the fedral government's powers of spending and taxation to affect employment,the price level and GDP
Fiscal policy is the spending and taxation policy of the government.

3.
b. a bank's reserves to its total deposits.
It is the amount of total deposits the banks need to keep as reserves.

4.
b. In a barter system economy,there are many different rates of exchnage as there are pairs of goods to trade.
Barter is the direct exchange of goods and services for other goods.

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