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- Fiat money has an intrinsic value based on the full faith and trust in government institutions. Select one: True FalseSome individuals have indicated that the FASB must be cognizant of the economic consequences of its pronouncements. What is meant by “economic consequences”? What dangers exist if politics play too much of a role in the development of GAAP?Which of the following is not one of the pillars of Macroeconomic policies of the Government? a. Foreign Policies b. Fiscal policy c. Monetary policy d. Exchange rate policy.
- What does deficit spending require a government to do?Discuss the factors that determine the time-lag between the application of instrument or tool of monetary policy and the achievement of the ultimate goal.Is it necessary for the Federal Reserve to communicate the strategy and objectives of its monetary policymaking to financial markets and the public effectively? What challenges will the Federal Reserve face in these communications? Please provide your reasons for the questions.