In most modern, developed countries, the central bank is best described as (W V a private organization that issues and controls the country's money supply without any government involvement. IAI a private organization that issues and controls the country's money supply under contract from the government. (W U a government organization that issues and controls the country's money supply but is partly separate from the rest of the government. IA 3 government organization that issues and controls the country's money supply under the direct control of the rest of the government. If the U.S. Congress appropriates funds to pay for a purchase of goods by the federal government, the check to make the payment is written by __________ and is drawn on A the U.S. Treasury Department, the U.S. Treasury Department IA the U.S. Treasury Department, the Federal Reserve System IA the Federal Reserve System, the Federal Reserve System IA the Federal Reserve System, U.S. Treasury Department Question 3 10 pts Your text listed three roles central banks play as "bankers' banks." Which of the following roles was not on this list? Helping commercial banks screen potential borrowers. Providing loans to commercial banks during times of financial stress. Managing the payments system. Overseeing commercial banks and the financial system. Question 4 10 pts During the years after the 2008-2009 financial crisis, and again in the months after the 2020 COVID-19 crisis, the Federal Reserve System allowed the U.S. money supply to increase at an unusually rapid rate. It has done this mainly because the Fed's goal of has had to take a back seat to its goal of low, stable inflation; financial system stability interest rate stability; high, stable real growth high, stable real growth; low, stable inflation financial system stability, interest rate stabilityQuestion 5 10 pts During the last 30-40 years, central banks have played a key role in greatly reducing the severity of the problem of O economic recessions. financial crises. low productivity. high inflation. Question 6 10 pts The main problem facing monetary policy makers is that in the long run, monetary policy has little control over inflation. they have very little control over the growth rate of the money supply. in the short run, actions that seem necessary to control inflation often cause the economic growth rate to fall. monetary policy is very political, and central bankers who take strong action against inflation are not likely to be reelected.Question 7 10 pts According to your text, if interest rates are allowed to vary more from year to year then is/are likely to vary more from year to year. real GDP exchange rates O Both a and b Neither a nor b: interest rate variation, like relative price variation, is helpful for the economy. Question 8 10 pts According to your text, central bank transparency is a political necessity that interferes with the effective functioning of central banks. has been sharply reduced at most central banks during the last twenty years. helps build and preserve public support for central bank independence. is mostly a media issue and is not very important in practice.Question 9 10 pts Excessive government borrowing can create political pressure on central banks because their main job is to provide financing for the government's budget. high inflation makes it easier for governments to repay their debts. there is a danger that the central banks might default on the bonds they issue. O All of the above. Question 10 10 pts A country that belongs to is not allowed to have an annual budget deficit that exceeds three percent of its GDP. the European Monetary Union the North American Free Trade Area the Association of Southeast Asian Nations O the African Union