52. A consumer holds money to meet spending needs. This would be an example of the: A. Use of money as a measure of value B. Use of money as legal tender C. Liquidity demand, also known as transactions demand for money D. Asset demand for money Use the graph to answer question 53 Interest Rate 6 5 B 0 C D $50 100 150 200 250 300 Amount of Money Demanded ($B) 53. Refer to the graph above. If the supply of money was $200 billion, the interest rate would be: A. 1 percent B. 2 percent C. 3 percent D. 4 percent E 54. The conduct of monetary policy in the United States is the main responsibility of the: A. U.S. Treasury B. Federal Reserve System C. Office of Management and Budget D. Bureau of Economic Analysis 55. The fundamental objective of monetary policy is to assist the economy in achieving: A. A rapid pace of economic growth B. A money supply which is based on the gold standard C. A full-employment, noninflationary level of total output D. A balanced-budget consistent with full-employment 56. The purchase and sale of government securities by the Fed is called: A. Federal funds market B. Open market operations C. Money market transactions D. Term auction facility