Question

17. Overnight bank borrowing from the Federal Reserve is known as

a. secondary credit

b. federal funds borrowing

c. seasonal credit

d. primary credit

24. Some of the most important central banks in the world include

a. the People's Bank of China, the Federal Reserve, and the Bank of England

b. ​the Federal Reserve, the European Central Bank, and the Bank of England.

c. the Deutsche Bundesbank, the People's Bank of China, and the Federal Reserve.

d. the People's Bank of China, the European Central Bank, and the Federal Reserve.

25. A major automobile manufacturer typically has slow sales during the winter months, creating a cash flow problem for meeting payroll. In a situation like this, the automobile manufacturer may

a. issue banker's acceptances

b. borrow federal funds

c. purchase negotiable certificates of deposit (CDs)

d. Issue commercial paper

27. When the federal government runs a budget deficit, or spends more than they take in, they

a. typically cut back on their spending

b. typically print the money they need

c. typically increase taxes to generate more revenue

d. must borrow the difference

Answer 1