Which of the Following Is True

question 9

Multiple Choice

Which of the following is true?

• A)Federal deficits require that the Fed purchase government securities.
• B)Federal deficits will always result in an increase in money supply.
• C)The Federal Reserve monetizes debt by selling securities which ultimately increases money supply.
• D)An agreement between the Fed and the Treasury exists whereby the Fed is directly responsible for monetizing the debt whenever the deficit increases.
• E)None of the above.

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Definitions:

Unsteadiness

The quality or state of being unstable or prone to wobbling, often leading to difficulties in maintaining balance.

Electrical Shock

The physical reaction or injury caused by electric current passing through the body.

Disconnect Items

The action of separating or removing items from a system or collection, often to prevent interaction or functionality.

Legal

Pertaining to laws, regulations, and the judicial system, often in the context of compliance and obligations.