The Bank of England and the Federal Reserve ?
Correct answer: A. are central banks
- A. are central banks
- B. are branches of commercial banks
- C. use fiscal policy to influence GDP
- D. loan money to most of LDC commercial banks
Explanation
The Bank of England and the Federal Reserve are the central banks of the United Kingdom and the United States, respectively. They conduct monetary policy, not fiscal policy, which is handled by governments through taxation and spending.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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