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