A. The most commonly securitized assets are

a. home loans

b. us government (federal bonds)

c. stocks and derivatives

d. 401(K) and other types of retirement accounts

B. Aggregate demand is made up of four components in an open economy: C (consumption), I (economic investment), G (government purchases), and NX (net exports).

During the Great Depression, the United States experienced decreases in:

a. C, I, G, and NX

b. C, I and NX

c. C and I

d. I and G

C. A directive on how to buy and sell government bonds to/from banks for monetary policy is issued by _______ and carried out by ________.

a. FOMC; New York Fed

b. FOMC; Board of Governors

c. New York Fed; FOMC

d. Board of Governors; FOMC

D. FDIC insurance

a. is associated with moral hazard problems

b. not currently offered to most American small depositors

c. uses the payoff method in everyday business

d. allows customer deposits to be no larger than $250,000 in most banks