Statement I: Our Overall Imbalance of Trade Has Never Exceeded

question 128

Multiple Choice

Statement I: Our overall imbalance of trade has never exceeded $100 billion.
Statement II: Our overall imbalance of trade was lower in 2009 than it was in 1990.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any notice to the bank, such as checking accounts.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central bank policies, including regulating banks and setting interest rates.

Federal Open Market Committee

The branch of the Federal Reserve System responsible for setting monetary policy, including influencing interest rates and controlling the money supply.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance government spending and obligations, considered low-risk investments.