How does the Federal Reserve add liquidity to the economy?
a) By selling U.S. Treasury bonds
b) By purchasing U.S. Treasury bonds
c) By having the U.S. Treasury purchase goods and services
d) By having the U.S. Treasury lower taxes
e) By having the U.S. Treasury raise taxes
Ans: b) By purchasing U.S. Treasury bonds
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Which of the following is a difference between a private jury trial and summary jury trial?
A) A summary jury trial lasts only for a day, whereas a private jury trial usually lasts longer. B) The jurors in a summary jury trial are aware that their decision is not binding, unlike in a private jury trial. C) A summary jury trial ensures confidentiality, whereas a private jury trial does not. D) A summary jury trial can lead to the development of a two-tier system of justice, unlike that of a private jury trial.
The riskiest capital market security is
A) preferred stock. B) common stock. C) corporate bonds. D) Treasury bonds.