Explain the major differences between the Federal Reserve and the U.S. Treasury
Although many people confuse the Treasury and the Fed, each has its own distinct role to play. The U.S. Treasury is a budgetary agency, while the Federal Reserve is a monetary agency. The Treasury is responsible for managing the financial affairs of the federal government. In this capacity they collect the taxes and borrow the funds necessary to pay for government expenditures. The Fed is primarily concerned with the availability of money and credit for the entire economy, in doing so they help to provide a stable monetary framework for the economy. Unlike the Treasury, the Fed can create money "out of thin air". The Treasury mints the coins, and the Fed issues paper money. The Treasury issues Treasury securities, but the Fed does not.
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Thinking about the total utility gained from the consumption of a typical good, we can say in general that:
A. total utility will rise, peak, and then decline as more and more units are consumed. B. consuming more and more units of a good will eventually cause marginal utility to increase C. total utility increases by decreasing amounts, until it is maximized. Then it declines. D. total utility is maximized where the marginal utility is greatest.
The Federal Reserve is responsible for issuing currency.
Answer the following statement true (T) or false (F)