Suppose you are a personal friend of the current chair of the Board of Governors of the Federal Reserve System (Jerome Powell, 2019). He comes over to your house for lunch and notices your couch. He is so struck by the beauty of your couch that he simply must have it for his office. He buys it from you for $1,000 and, since it is for his office, he pays you with a check drawn on the Federal Reserve Bank of New York. 1. Are there more dollars in the economy than before? Why?
2. Why do you suppose that the Federal Reserve doesn't buy and sell couches, real estate, and so on, instead of government bonds when they intend to change the money supply?

1. Simply because Mr. Powell purchased your couch using a check from the FED doesn't increase the money supply. The money supply increases when the FED purchases bonds and infects new cash into the economy.

2. The money in the FED's check account is part of its budget, so it is already included in the monetary base. The FED carries out expansionary or contractionary monetary policy through government bonds because it results in new money being injected to the economy, or money being retrieved from the economy.

Explanation:

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.