Author Question: Most of the key decisions of the Federal Reserve are actually made by its Federal Open Market ... (Read 65 times)

jwb375

  • Hero Member
  • *****
  • Posts: 540
Most of the key decisions of the Federal Reserve are actually made by its Federal Open Market Committee.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Suppose the U.S. dollar appreciates in value against the Australian dollar, and the Fed intervenes in the foreign exchange market by using U.S. dollars to buy Australian dollars. The Fed could sterilize the expansionary effect of this intervention by:
 a. buying U.S. dollars in the foreign exchange market.
  b. buying U.S. government bonds in the domestic open market.
  c. selling Australian dollars in the foreign exchange market.
  d. selling U.S. government bonds in the domestic open market.
  e. buying Australian dollars in the foreign exchange market.



joanwhite

  • Sr. Member
  • ****
  • Posts: 308
Answer to Question 1

True

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

For a complete list of videos, visit our video library