Which of the Following Is the Correct Statement of the Government

question 88

Multiple Choice

Which of the following is the correct statement of the government budget constraint?

• A)Federal budget deficit = change in Treasury securities held by public + increase in monetary base
• B)Federal budget deficit = change in Treasury securities held by public - increase in monetary base
• C)Federal budget deficit = increase in monetary base - change in Treasury securities held by public
• D)Federal budget deficit = change in reserves of banking system + change in currency outstanding

---

Definitions:

Equities

Financial assets representing ownership interest in a company, typically in the form of shares of stock.

Surf Forecasting Software

A specialized software application that uses meteorological and oceanographic data to predict wave conditions and surf quality at various beaches.

Real Asset

Tangible property such as real estate, commodities, and physical goods that have intrinsic value due to their substance and physical properties.

Financial Asset

An asset that encompasses cash, a stake in a company, or a binding agreement to either receive or provide cash or a different financial instrument.