1-     The U.S. government funds the federal budget deficit by

a.      Selling securities such as Treasury bonds and Treasury bills

b.     Selling stock in government-owned corporations

c.      Selling shares in gold owned by the Federal Reserve via special drawing rights

d.     Borrowing from large private banks at favorable terms and low interest rates

2-     The fact that there are so many diverse ways for businesses to raise money is

a.      One of the strengths of the US economy

b.     An impediment to well-functioning monetary policy

c.      One of the causes of the Financial Crisis of 2007-2009

d.     The reason Congress established the Federal Reserve in 1913

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