Increasingly the ________ Has Been Acting as Macroeconomic Police of the World

question 80

Multiple Choice

Increasingly the ________ has been acting as macroeconomic police of the world economy, insisting that countries seeking significant borrowings adopt certain macroeconomic policies.

• A) Economic and Social Council (ECOSOC)
• B) International Monetary Fund (IMF)
• C) United Nations (UN)
• D) World Bank

Know the composition and functions of legal reserves.

Identify and distinguish between the different tools the Federal Reserve uses to control the money supply.

Understand the role of monetary policy in influencing economic conditions.

Recognize the significance of reserve requirements on banking operations.

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Definitions:

De Facto

A term used to describe practices that exist in reality, even though they are not officially recognized by laws.

Promissory Notes

Written, legally binding agreements in which one party promises to pay another a specified sum of money at a future date or on demand.

Debentures

A type of long-term debt instrument used by companies and governments to borrow money, not secured by physical assets.

Warrants

Legal documents that grant the holder the right to buy or sell a particular asset at a specific price before a certain date.