Retirement of government debt held by the Federal Reserve tends to have an anti-inflationary effect because:
A) It drains funds from the public through taxes
B) It uses surpluses to retrieve Treasury securities from the Federal Reserve
C) It increases legal reserves by the amount paid to the Fed
D) It does not return unspent revenues to the general public
E) It decreases spending by transferring money from the general public to investors
Correct Answer:
Verified
Q91: Treasury borrowing directly from the Federal Reserve
Q92: Treasury borrowing directly from Federal Reserve:
A) Increases
Q93: The net effect of government retirement of
Q94: Retiring government debt held by depositories causes:
A)
Q95: Retirement of government debt through budget surpluses
Q97: Securities issued by the U.S. Treasury today
Q98: An example of marketable public debt is:
A)
Q99: The difference between marketable and nonmarketable public
Q100: The market for government securities is the
Q101: The trend toward shorter maturities of marketable
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