Author Question: Which of the following correctly describes what the Fed used as monetary targets in the past? A) ... (Read 39 times)

burton19126 · **on:** Jun 29, 2018

Which of the following correctly describes what the Fed used as monetary targets in the past?

A) The Fed used M1 and M2 as targets after 1993.
B) After 1980 and before the 1990s, the Fed focused on interest rate targets.
C) The Fed focused on M1 as a target after deregulation of the financial markets.
D) The Fed increased its reliance on interest rate targets since the mid-1990s.

Question 2

Based on the following information, what is the balance on the current account?

Exports of goods and services = 5 billion
Imports of goods and services= 3 billion
Net income on investments = -2 billion
Net transfers = -2 billion
Increase in foreign holdings of assets in the United States = 4 billion
Increase in U.S. holdings of assets in foreign countries = -1 billion

A) -2 billion B) 1 billion C) 3 billion D) 4 billion