Under a pure gold standard
A) the dollar is tied to gold and all other currencies are fixed relative to the dollar.
B) all foreign exchanges involve gold for goods and services.
C) all currencies are defined in terms of gold and these rates are fixed.
D) all trade involves government agencies.
Answer: C
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An arrangement in which Kathleen sells some of her barley when it is planted, with the promise to deliver it and receive payment after it is harvested, is called
A) a savings contract. B) a deferred private bond. C) a futures contract. D) a commodity transfer.
The Fed is a central bank and as such
A) does business only with the federal government. B) provides banking services to banks but not individuals. C) provides banking services to individuals and firms. D) does business with international organizations such as the United Nations. E) is where the Federal Government turns when it needs to borrow.