Which of the following is not a function of the Federal Reserve System?

Which of the following is not a function of the Federal Reserve System?
 a. To control the money supply.
  b. To print new money.
  c. To supervise and regulate banks.
  d. To aid in the check clearing process.
  e. To maintain and circulate currency.

QUESTION 2

A traditional system solves basic economic questions by long-standing customs.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Which of the following options could be used to eliminate a recessionary gap?
 a. Increase government spending.
  b. Decrease government spending.
  c. Decrease investment.
  d. Increase taxes.

QUESTION 4

Which of the following is not one of the functions of the Federal Reserve?
 a. Clearing checks.
  b. Printing currency.
  c. Supervising and regulating banks.
  d. Controlling the money supply.

QUESTION 5

In traditional economies, people base economic decisions on the precedents established by previous generations.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Using the aggregate expenditure-output model, assume the aggregate expenditures (AE) line is below the 45-degree line at full-employment GDP. This vertical distance is called a(n):
 a. inflationary gap.
  b. recessionary gap.
  c. negative GDP gap.
  d. marginal propensity to consume gap.

QUESTION 7

Which of the following institutions is responsible for supervising the banking system of the United States?
 a. The Federal Reserve System.
  b. The Open Market Committee.
  c. The U.S. Treasury.
  d. The Federal Deposit Insurance Corporation.