Reference no: EM131167287
1. The budget of an economy is said to be in deficit when
A. anticipated inflation rate exceeds its actual rate
B. federal revenues exceed outlays.
C. there is a loss of value of a country's currency with respect to one or more foreign reference currencies
D. federal outlays exceed revenues
2. The reserve ratio is the ratio of
A. Federal Reserve member banks to all U.S. banks
B. Federal Reserve member banks to nonmember banks
C. a bank's reserves to its total deposits
D. a bank's total deposits to its reserves
3. The members of the Board of Governors of the Fed are
A. chosen by the state governors
B. appointed by the president with the approval of the Senate
C. all replaced after each Presidential election
D. elected for seven-year terms
4. The actions of the Fed
A. must be approved by Congress alone
B. must be approved by the president and CongresS
C. are not subject to approval by any branch of government
D. must be approved by the president alone.
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