D) it is more expensive for foreigners to purchase U.S. goods and services becau

Question

D) it is more expensive for foreigners to purchase U.S. goods and services because the dollars needed to buy US-made goods become more costly E) export-oriented industries in the United States will lobby the govenment to continue the increase in the price of the dollar 18. Open market operations refers to: A) Congressional oversight over Foderal Reserve market operations. B) the Federal Reserve's buying and selling of U.S. government treasary securities C) the banking system's rule that all of its operatioes must be subject to public audits. D) the idea that the buying and selling of securities must be done in public. E) the Fed's actions that are done under public scrutiny 19. Prior to the Great Depressice, the predominant goal of U.S. fiscal policy was: A) to balance the budget and kexp expenditures to a minimum B) to fight inflation C) to fight unemployment D) to maintain an international balance of trade E) to maximize tax revenues 20. Which of the following money assets is most portable? A) Stone B) Dollar bells C) Cattle D) Iron bars E) Large clam shells 21A credit card is not considered to be part of the money supply because: A) it charges interest B) credit card companies are not banks. C) credit card holders can defauls D) credit is a loan (a liability) that must be repaid E) credit card debt is eventually repaid. 22. One factor that weakened the effects of traditional expansionary monetary policy in the 2008-2009 recession was A) Congress didn't vote to decrease the money supply B) Consumers decided to get loans while the market is soft." C) Banks were reluctant to make loans, contributing to a credit freeze and a slowdown in the circlation of money D) The policy caused interest rates to rise, thereby discouraging borrowing. E) The government lowered taxes. 23·The concept of the cyclical deficit means that budget deficits: a) naturally rise and fall over the course of the business cycle. b) rise in the winter and fall in the summer c) are followed by a surplus in the subsequent year. d) typically turn to surpluses within five years. e) always make the business cycle worse. 24. The gold standard: A) must be established before a country can adopt a fixed exchange-rate system. B) refers to the backing of currency in circulation by an equivalent amount of gold or other precious met C) was used in the U.S. until the late twentieth century, but was phased out in the U.S. in 1971. D) both a) and b) are correct E) both b) and c) are correct

Explanation / Answer

18. The correct answer is: b)

Reason: By definition, open market operations is the process through with Fed conducts buying and selling of US government securities. These are mainly performed to maintain the monetary oplicy stance.

P.S.: As per Chegg's policy, if nothing is mentioned then only the first question is to be answered.

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