What restricts the Fed's ability to write checks and purchase U.S. securities?
a. Congress; the Fed must receive a budget allocation from Congress before it can write a check.
b. The gold requirement; the Fed cannot write a check unless it has a sufficient amount of gold to back the expenditure.
c. Reserve requirements; the Fed must maintain 20 percent of its assets in the form of cash against the deposits that it is holding for commercial banks.
d. Nothing; the Fed can create money simply by writing a check on itself.
D
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Which of the following is an example of a positive externality?
a. A college student buys a new car when she graduates. b. The mayor of a small town plants flowers in the city park. c. Local high school teachers have pizza delivered every Friday for lunch. d. An avid fisherman buys new fishing gear for his next fishing trip.
The government program that provides aid to families in need is
A) TANF. B) Social Security program. C) Supplemental Security Income program. D) Earned Income Tax Credit.