What is the purpose of the Fed'slender of last resort

function?

• to control the money supply
• to purchase unwanted government bonds
• to loan money to the public
• to try to prevent bank failures

Advika is a resident of India who exports hand-dyed fabrics to other nations. Since India has anexchange control system, what does this mean for Advika?

• Her government trades Indian bonds for any foreign currency that Advika earns.
• Her government purchases and sells any foreign currency that Advika earns.
• The Reserve Bank of India keeps all of Advika's foreign currency for her.
• The Reserve Bank of India manages Advika's foreign currency profits.

What combinations will a given money supply equalize?

• aggregate demand and aggregate supply
• price level and real output
• excesses and balances
• price level and real income

Monetarists focus their attention on __________

• fiscal policy
• monetary policy
• interest rates
• money's velocity

Most Keynesians believe that monetary policy is best used to control __________.

• balance of payments
• interest rates
• minimum wages
• the federal budget