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Fin 310 Maco Multiple Choice

Terms in this set (12)

The economic goals of the Federal Reserve include
d. 1. prosperity
2. full employment
3. stable prices
When the Federal Reserve seeks to expand the money supply, it
b. buys securities
When the Federal Reserve seeks to contract the money supply, it may
a. sell securities and raise the targeted federal
funds rate
A federal government deficit may be financed by
a. 1. the general public buying government bonds
2. commercial banks buying treasury bills
The sum of cash, currency, and demand deposits is
a. M-1
The fiscal policy of the federal government excludes
c. the money supply
The anticipation of inflation suggests that the investor should
b. anticipate higher interest rates
Deflation is a period of
d. falling prices
Recession is a period of
b. rising unemployment
Inflation is a period of
b. rising prices of consumer goods
Large increases in the money supply are
associated with
a. increased inflation
One means to invest in anticipation of inflation
is to
c. acquire ETFs specializing in commodities
THIS SET IS OFTEN IN FOLDERS WITH...