A problem that the Fed faces when it attempts to control the money supply is that
a. the 100-percent-reserve banking system in the U.S. makes it difficult for the Fed to carry out its monetary policy.
b. the Fed has to get the approval of the U.S. Treasury Department whenever it uses any of its monetary policy tools.
c. the Fed does not have a tool that it can use to change the money supply by either a small amount or a large amount.
d. the Fed does not control the amount of money that households choose to hold as deposits in banks.
d
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The term capital, as used in macroeconomics, refers to
A) the amount of money that someone can invest in a new venture. B) the amount of money a firm can raise in the stock market. C) physical capital. D) All of the above answers are correct.
Regulation of the financial system
A) occurs only in the United States. B) protects the jobs of employees of financial institutions. C) protects the wealth of owners of financial institutions. D) ensures the stability of the financial system.