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Fiscal policy refers to the government's actions in managing its debt and controlling the money supply.
False
The federal government influences the cost of borrowing mortgage funds through its fiscal policy only.
False
The U.S. Treasury Department is responsible for managing the federal government's finances and carrying out fiscal policy.
True
A federal deficit occurs when the government collects more funds than it spends.
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The government covers a federal deficit by issuing interest-bearing securities to investors.
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Fiscal policy is the government's actions in managing its debt and controlling the money supply.
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The federal government influences the cost of borrowing mortgage funds through fiscal policy and monetary policy.
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The U.S. Treasury Department manages the government's finances and carries out fiscal policy.
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A federal deficit occurs when the government spends more than it collects.
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The government covers a federal deficit by issuing interest-bearing securities to investors.
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The Federal Open Market Committee (FOMC) directs open market operations.
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There are 10 members in the Federal Open Market Committee (FOMC).
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Open market operations are the Fed's primary means of controlling the money supply.
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Money supply decreases when the Fed buys government securities.
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Increased money supply is expected to raise interest rates.
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The Federal Reserve System changes monetary policy frequently.
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In the 1970s, the Fed moderated interest rates by decreasing money supply when interest rates rose.
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The Securities Department of the Federal Reserve Bank of New York is responsible for conducting open market operations.
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Open market operations are only conducted by the Federal Reserve Board.
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