HomeworkLib
Question

Say economy is in inflation and financial markets are showing bullish trend. What should be the...

Say economy is in inflation and financial markets are showing bullish trend. What should be the primary policy to counter such inflation? Which agency is responsible? and What is the tool used to control such inflation?

Multiple Choice

  • Congressional policy, SEC, and Lending/Borrowing Rates

  • Interstate policy, Federal Reserve Bank, and Mortgage Rates

  • Fiscal policy, Dept. of Commerce, and Spending stimulus Bill

  • Monetary policy, Federal Reserve Bank, and Interest Rates

  • Banking policy, Dept. of Treasury, and Tax Plan

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Primary policy to counter the inflation which is existing into the economy would be the monetary policy which are often decided by the central banks of the economy and the central banks of the economy will be having various tools like interest rates and reserve requirements in order to counter the inflation.

All the other options are false.

Correct answer will be option (D) MONETARY POLICY, FEDERAL RESERVE BANK, INTEREST RATES

0 0
Add a comment
Know the answer?
Add Answer to:
Say economy is in inflation and financial markets are showing bullish trend. What should be the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. Central bank responsibilities do not include: a. Providing mortgages to consumers b. Acting as the...

    1. Central bank responsibilities do not include: a. Providing mortgages to consumers b. Acting as the government's bank or fiscal agent c. Setting monetary policy d. Acting as a lender of last resort (emergency lending) 2. A governor on the Board of Governors is nominated by: a. The Chair of the Fed b. The Senate Banking Committee c. Regional Fed Presidents d. The President of the United States 3. There is a regional Federal Reserve Bank in each of the...

  • In an economy where the money supply and aggregate demand have been decreased by the Central...

    In an economy where the money supply and aggregate demand have been decreased by the Central Bank, you know that the Central Bank is using 答案选项组 a contractionary monetary policy. an expansionary monetary policy. a loose monetary policy. follow expansionary fiscal policy How does monetary policy affect the market? 答案选项组 Monetary policy has a more of an impact on consumption than investment. Monetary policy has a more of an impact on government spending than investment. Monetary policy has an indirect...

  • 1. Traditional monetary policy is conducted by managing : Group of answer choices the prime rate....

    1. Traditional monetary policy is conducted by managing : Group of answer choices the prime rate. mortgage rates. the federal funds rate. the discount rate. 2. What is required to achieve the Federal Reserve's broad goal of achieving a safer, more flexible financial system? Group of answer choices Safe and sound financial institutions A strong infrastructure for payments Both A and B Congressional oversight of the banking system. 3. A unified national currency was established and a heavy tax was...

  • answer please 25. A bank borrows money from another bank on an overnight basis to meet...

    answer please 25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....

  • What are the three main tools the Federal Reserve (Fed) has at its disposal to carry out monetary policy? setting...

    What are the three main tools the Federal Reserve (Fed) has at its disposal to carry out monetary policy? setting the discount rate, increasing taxes, and building highways conducting open market operations, increasing spending by the federal government, and decreasing taxes conducting open market operations, setting the discount rate, and paying interest on reserves O paying interest on reserves, conducting open market operations, and controlling money demand During the financial crisis of 2007-2008, the Fed engaged in lending to certain...

  • Why would we see the prices on US government bonds suddenly rise? Multiple Choice Bond prices...

    Why would we see the prices on US government bonds suddenly rise? Multiple Choice Bond prices can only rise if the US government pays more interest on these investments They would rise if there was suddenly lots of bad economics news like higher unemployment an increase in natural disasters like explding volcanoes, or the start of new wars le China attacks Taiwan), then we would see bond prices rise on US government bonds If we had a sudden explosion of...

  • 1) What is real GDP? Group of answer choices It is the total market value of...

    1) What is real GDP? Group of answer choices It is the total market value of final goods and services produced in an economy in a given year. It is a sustained increase in the average price level of goods and services. It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation. It is an increase in the money supply. 2) The unemployment rate is: Group of...

  • 41 The money supply is a curve that is typically drawn as a vertical line on...

    41 The money supply is a curve that is typically drawn as a vertical line on the standard money supply - money demand graph that is used in the study of monetary policy. We all know the money supply is only controlled by the Federal Reserve Bank. Conclusion: In the audio visual lecture Professor Torres stated that anytime we see a supply curve drawn as a vertical curve line, then that means that the product or service is 100 percent...

  • The federal reserve conducts fiscal policy to manage inflation and maximize employment  true, false How many federal...

    The federal reserve conducts fiscal policy to manage inflation and maximize employment  true, false How many federal reserve banks are there across the united states 12 The federal reserve has various tools to impact the economy, which one(s) are listed below Raising or lowering the prime lending rates Raising or lowering the discount rate Conducts open market operations Both A and C Both B and C The fed reserve chairman is chosen by the president and is responsible for carrying out...

  • The unemployment rate was "very high" between 2008 and 2014. The US federal government, in order...

    The unemployment rate was "very high" between 2008 and 2014. The US federal government, in order to propel (stimulate) the economy implemented some stimulus packages in 2008 and 2009 (being the biggest one the American Recovery and Reinvestment Act of 2009, for $787 billion, which included an increase in government spending and tax cuts). Some economists (including Nobel Prize winner Paul Krugman) argued that the “packages” were too small (and then they even asked for more!); however some other economists...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT