Question

The monetary policy of the United States economy is the responsibility of:

Select one:

a. Federal Reserve System.

b. Federal Congress.

c. Treasury Department.

d. Banking and Finance Committee of the Federal Senate.

Public debt is the amount of money that:

Select one:

a. the government of a country owes to the bondholders.

b. states and municipal governments owe the Federal government

c. residents of a country owe to foreigners.

d. the government of a country owes to the taxpayers.

Empirical evidence indicates that in industrially advanced nations:

Select one:

a. There is a very vague relationship between the degree of independence of the central bank and the inflation rate.

b. the more independent the central bank, the higher the interest rate.

c. the greater the independence of the central bank, the lower the average annual rate of inflation.

d. the more independent the central bank, the higher the average annual rate of inflation.

Answer 1

Banking and finance committee of the Federal senate is the monetory policy of the United states. Which has jurisdiction over matters related to banks and banking, price controls, deposit insurance, export promotion and controls, federal monetory policy, financial aids to commerce and industry, issuance of redemption of notes, currency and coinage, public and private housing, urban development, mass transit and government contracts.

Public debt is the amount of money the government of a country owes to the bondholders.

Empirical evidence indicates that in industrially advanced nations the more independent the Central bank the lower the annual rate of inflation. This effect on inflation is stronger the more democratic a country is, but is also present in non- democratic countries.