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1. Which two of the following financial institutions offer chewable deposits included within the M1 money supply: mutual fund companies, insurance companies, commerical banks; securities firms, thrift institutions? Which of the following is not included in either M1 or M2: currency held by the public; checkable deposits, money market mutual fund balances.

2. How does the purchasing power of the dollar relate to the nations price level?

3. Explain Who selects the chairperson of the Federal Reserve System? What is the composition and purpose of the Federal Open Market Committee?

4. What is meant when economists say that the Federal Reserve banks are central banks, quasi-public banks, and banker's banks? What are the seven basic functions of the Federal Reserve System?

Macroeconomics, Economics

  • Category:- Macroeconomics
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