Question: 6. The limits set by the Board refers to a) the Fed's legal reserve requirement b) the amount of bonds bought by the Fed c)

6. The "limits set by the Board" refers to

a) the Fed's legal reserve requirement b) the amount of bonds bought by the Fed

c) the amount of bonds sold by the Fed d) the amount of cash created by the Fed

7. What technical terminology do economists use to refer to "how much the money will multiply as this process unfolds"?

a) the multiplier b) the money multiplier

c) required reserve ratio d) open market operations

8. The board pumps money out of the economy by

a) buying bonds b) selling bonds

c) creating cash d) lowering the reserve requirements

"The deficit will mainly be financed by selling bonds to the general public and not to the central bank."

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