All of the are tools to the Fed for controlling the money supply except O Taxes

Q: All of the are tools to the Fed for controlling the money supply except O Taxes

47. A Taxes is the tool available to the government. It is not available to Fed. 48. D Transaction account and currency in circulation, become the major part of M1 money. 49. A MPS = 1-MPC = 1-.85 = .15 50. D It is the 12 Federal Reserve banks, present in 12 Federal Reserve districts in the USA, that serve to the private banks.

ID: 1161833 • Letter: A

Question

All of the are tools to the Fed for controlling the money supply except O Taxes O The reserve O Open market operations. QUESTION 48 The majority of the basic money supply (M1) in the United States is in the form of O Savings accounts and currency in circulation. O Gold and traveler's checks. O Transactions accounts and currency in circulation QUESTION 49 Suppose a consumption function is given as C $175+0.85 Yo. The marginal propensity to save is ? 0.15. O-0.15. O 200. O 0.85. QUESTION 50 Which of the following serves as the central banker for private banks in the United States? O The executive branch of government. O The Federal Open Market Committee O The 12 Federal Reserve banks.

Explanation / Answer

47.

Taxes is the tool available to the government. It is not available to Fed.

48.

Transaction account and currency in circulation, become the major part of M1 money.

49.

MPS = 1-MPC = 1-.85 = .15

50.

It is the 12 Federal Reserve banks, present in 12 Federal Reserve districts in the USA, that serve to the private banks.

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All of the are tools to the Fed for controlling the money supply except O Taxes

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