a member of congress, who has never had an economics course, has just placed on a money and banking

Can a member of Congress be placed on a money Committee?

A member of​ Congress, who has never had an economics​ course, has just been placed on a Money and Banking Committee. The official needs a briefing prior to the first meeting concerning the role of the money supply in the economy.

Why are some members of Congress not complying with the STOCK Act?

But many members of Congress have not fully complied with the law. They offer excuses including ignorance of the law, clerical errors, and mistakes by an accountant. While lawmakers who violate the STOCK Act face a fine, the penalty is usually small — $200 is the standard amount — or waived by House or Senate ethics officials.

Why aren’t members of Congress complying with the public disclosure law?

A key provision of the law mandates that lawmakers publicly — and quickly — disclose any stock trade made by themselves, a spouse, or a dependent child. But many members of Congress have not fully complied with the law. They offer excuses including ignorance of the law, clerical errors, and mistakes by an accountant.

Who are the members of Congress who improperly disclosed stock purchases?

Allen, a four-term Republican who represents a large southeastern region of Georgia, appears to have improperly disclosed the purchases and sales of several stocks during 2019 and 2020. Rep. Mike Kelly, a Republican from Pennsylvania.

Which of the following correctly describes what type of monetary policy the Fed might choose and how the policy would change the economy quizlet?

Which of the following correctly describes what type of monetary policy the Fed might choose and how the policy would change the​ economy? The Fed could use a contractionary monetary policy to reduce aggregate demand and GDP. open market​ sales, increasing the reserve​ requirement, and increasing the discount rate.

What type of relationship exists between the growth of the money supply and changes in the inflation rate Part 2?

What type of relationship exists between the growth of the money supply and changes in the inflation​ rate? A direct relationship.

Which of the following is one monetary policy action that could eliminate the recessionary gap in the short run quizlet?

The Federal Reserve can eliminate a recessionary gap in the short run by undertaking a policy action that increases aggregate demand. Which of the following is one monetary policy action that could eliminate the recessionary gap in the short​ run? A. The Fed can lower taxes.

Which of the following is a disadvantage of holding money as an asset multiple choice question?

The disadvantage of holding money balances as an asset, of course, is the interest earnings forgone. Each individual or business decides how much money to hold as an asset by looking at the opportunity cost of holding money.

What economic growth means?

Economic growth – measured as an increase of people's real income – means that the ratio between people's income and the prices of what they can buy is increasing: goods and services become more affordable, people become less poor.

What happens when the growth of a nation's money supply is faster than the growth of its output?

Inflation is caused when the money supply in an economy grows at faster rate than the economy's ability to produce goods and services.

Which of the following combinations of fiscal and monetary policy actions would move the economy toward full employment in the short-run?

Which of the following combinations of fiscal and monetary policy actions would move the economy toward full employment in the short run? An increase in government spending is an expansionary fiscal policy that will increase aggregate demand and real output.

How do you close a recessionary gap?

Fiscal policy means using either taxes or government spending to stabilize the economy. Expansionary fiscal policy can close recessionary gaps (using either decreased taxes or increased spending) and contractionary fiscal policy can close inflationary gaps (using either increased taxes or decreased spending).

In which of the following situations is expansionary monetary policy most effective?

In which of the following situations is expansionary monetary policy most effective? When the banking system lends out excess reserves, it complements Fed action that will result in successful monetary policy.

What is placement in money laundering?

Placement is the introduction of unlawful proceeds into the financial system. Structuring, which is considered a type of placement activity, is any attempt to evade legal reporting requirements for cash/currency transactions conducted with a financial institution.

Which of the following are reasons that a real World bank would not deposit all of its cash in the Federal Reserve bank?

What is the reason that a real-world bank would not deposit all of its cash in the Federal Reserve Bank? Banks require excess reserves to enable lending and earn income interest. assets (Cash) = $ 100,000 and Liabilities and Net worth (stock shares) = $ 100,000.

When economists say that money serves as a medium of exchange they mean that it is?

a medium of exchange. When economists say that money serves as a medium of exchange, they mean that it is: a monetary unit for measuring and comparing the relative values of goods.

What is the state of the economy depicted at the right?

The state of the economy depicted at the right can be best described as. having a recessionary gap. A contractionary monetary policy lowers equilibrium real GDP in the short​ run, by increasing the interest rate. In an open​ economy, the net export effect.

What policy would the Fed use to reduce aggregate demand and GDP?

The Fed could use a contractionary monetary policy to reduce aggregate demand and GDP. Suppose that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all three of its policy​ instruments, then the Fed will engage in.

How does the Federal Reserve eliminate the short run gap?

If there is an inflationary gap in the short​ run, the Federal Reserve can eliminate the gap in the short run by undertaking a policy action that reduces aggregate demand. ​ But, if Federal Reserve chooses not to close the gap in the short​ run, the economy will eventually get back to full employment in the long run.

Why is there a transaction demand for money?

The transaction demand for money because you planned to buy the gift and the precautionary demand for money because you did not anticipate buying the sweater. A perpetual bond sells for​ $1,000 and will pay ​$81 a year forever. The Fed changes its policy and the interest rate changes to 9 percent.

How does the Fed apply monetary policy?

The Federal Reserve​ (the Fed) and the European Central Bank​ (ECB) apply monetary policy by controlling interest​ rates: the federal funds​ rate, and the repo rate respectively. These two central banks apply expansionary policy by reducing the two interest rates and contractionary policy by raising the two target interest rates.

What are the direct and indirect effects of expansionary monetary policy?

Both the direct and the indirect effects of an expansionary monetary policy are to increase aggregate demand. The indirect effect of an increase in the money supply works through. a decrease in the interest rate increasing investment and consumption. In an open​ economy, the net export effect.

Invest Like The Richest Members Of Congress

Given members of Congress know things the average person doesn’t know, it is wise to follow how some of the richest members invest. After all, if you can’t beat them, join them!

Inside Information Is A Grey Area

If you don’t think there’s regular pillow talk between Nancy and Paul, I’ve got an $8 bottle of water to sell you. Oh wait a minute, that’s a bad example because bottled water is a ~$300 billion business!

How Inside Information Might Spread Unintentionally

Black and white insider trading is receiving a tip from someone in the know about something that will happen. You then invest according to the inside information and hope the government doesn’t catch you. See billionaire Raj Rajaratnam’s case or ex-New York Congressman Chris Collins as examples.

Of Course Politicians Are Aware Of Sensitive Information

Now that I’ve provided you with some grey area insider information examples, how can you not believe some members of Congress know stock-moving information that you and I don’t.

Buy And Sell What Congress Members Buy And Sell

When I first saw the report about the stock options Paul Pelosi had bought, I was pumped! I’ve been a long-time shareholder of Apple, Google, and Amazon. Further, I had bought more during this year’s dip as reported in, How I’d Invest $100,000 Today.

Resist The Temptation To Trade With Inside Info

Finally, it goes without saying that insider trading is illegal. It’s not worth ruining your reputation and your life over money. If you really want to legally conduct insider trading, consider running for Congress instead.