Economics questions pls help

Question

1) Compare the functions of the federal reserve district banks

A) the federal reserve district banks direct monetary policy and overlook the banking industry while the Board of Governors implement the policies from the district banks

B) the federal reserve district banks set the target federal funds rate and oversee open market operations while the Board of governors direct monetary policy and set reserve requirements on banks

C) the board of governors set the target federal funds rate and overlook the banking industry while the federal reserve district banks implement the policies from the board of governors

D) the board of governors set the discount rate and reserve requirements on banks while the federal reserve district banks overlook the banking industry and implement the policies from the board of governors

2) which situations result in an increase in the national debt?

Select the two correct answers

A) a decrease in the federal budgets deficit

B) a decrease in intragovernmental debt

C) a balanced federal budget

D) an increase in intragovernmental debt

E) an increase in the federal budgets deficit

F) a surplus in the federal budget

3) the economy has been sluggish in recent months with slow economic growth. Explain the policies that the federal reserve could use to improve the economy

A) the federal reserve purchases treasuries and securities, and also issues new repurchase agreements. The increase in the money supply increases interest rates and inflation, which spurs economic growth

B) the federal reserve sells treasuries back to banks and issues new reverse repurchase agreements. The decrease in money supply increases interest rates, which increases lending

C) the federelal reserve stops purchasing treasuries and securities, and then issues new reverse repurchase agreements. The short term profits and decrease in the money supply cause a decrease in interest rates and increased lending

D) the federal reserve purchases treasuries and securities and also issues new repurchase agreements. The increase in the money supply and decrease in interest rates result in more lending and risk

Answer 1

1. The correct answer is C. The Board of Governors helps oversee the banking industry and directs monetary policy, while the Federal Reserve district banks help implement those policies. More specifically, the Federal Open Market Committee (FOMC), which includes members of the Board of Governors and district bank representatives, sets the target federal funds rate. Therefore, C is the closest answer.

2. The correct answers are D and E. An increase in intragovernmental debt increases the total national debt because the government owes more money to its own accounts, such as Social Security trust funds. An increase in the federal budget deficit also generally increases the national debt because the government must borrow more money to cover spending that exceeds revenue.

3. The correct answer is D. When economic growth is slow, the Federal Reserve can use expansionary monetary policy to stimulate the economy. By purchasing Treasury securities and conducting repurchase agreements, the Fed can increase liquidity in the banking system and put downward pressure on interest rates. Lower interest rates encourage borrowing, consumer spending, and business investment, which can help increase economic activity and promote growth.