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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Self-Quiz Unit 6

Self-Quiz Unit 6

Q Question 1 Correct Mark 1.00 out of 1.00 Flag question Question text How does a decrease in value of a country's currency relative to other currencies affect its balance of trade? Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text If the Fed buys U.S. Treasury securities, then this Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text If the Fed lowers the reserve requirement, then this Question 4 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is not a tool the Fed uses to manage the money supply?

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1.The correct answer is: A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and increases the balance of trade. 2.The correct answer is: increases reserves, encourages banks to make more loans, and increases the money supply. 3.The correct answer is: increases excess reserves, encourages banks to make more loans, and increases the money supply.