Section 9.2
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Questions and Answers

All of the following situations could cause a fall in the value of the U.S. dollar in relation to the Japanese yen except

  • Japanese investors buying U.S. Treasury securities (correct)
  • U.S. investors buying Japanese securities
  • an increase in Japan's trade surplus over that of the United States
  • a general decrease in U.S. interest rates

    • Which organization or governmental unit sets fiscal policy?

  • Federal Reserve Board (FRB)
  • Government Economic Board
  • Congress and the president (correct)
  • Secretary of the Treasury

    • Which of the following is added to M2 to arrive at M3?

  • Large time deposits (correct)
  • Currency in circulation
  • Checking accounts
  • Gold and silver bars in bank storage vaults

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