The Federal Reserve System Trivia

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Transcript The Federal Reserve System Trivia

The Federal Reserve System
Trivia
11d Newell
Which of the following is the
term for the interest rate that
the Federal Reserve charges
banks to borrow money?
A Savings rate
B Available funds rate
C Circulation rate
D Discount rate
The Federal Reserve System
(Fed) does all of the following
EXCEPT A sells government securities
B writes new banking laws
C regulates the nation's money
supply
D controls interest rates
The term for money that the
Federal Reserve system
requires a bank to keep and
not loan to consumers is
called a A surcharge
B reserve
C tax
D surplus
Which of the following would
likely slow the economy?
A Increasing the available
money supply
B Decreasing the reserve
requirement
C Raising the discount rate
D Buying government securities
The Federal Reserve
System (Fed) issues A loans to corporations
B currency
C indictments for
counterfeiting
D proclamations
When the Federal Reserve
System wants to stimulate the
economy it A increase reserve rates
B increases the reserve date
C sells government securities
D lowers the discount rate
The FED stands for A Federalists
B Funding Education
Dividends
C Federation
D Federal Reserve
System
In order to control inflation
(going too fast), the
government is likely to A decrease interest rates
B reduce the money in
circulation
C increase interest rates
D decrease corporation profits
What would be the likely outcome if
the Federal Reserve raised its
interest rates to member banks?
A People will purchase more capital
goods.
B People will be more likely to
borrow money.
C The amount of money in circulation
will be restricted.
D More businesses will be formed.
To ease a recession (going too
slow), the government is likely
to change its fiscal policy by A reducing the money in
circulation
B spending more money
C decrease corporation profits
D spending less money
The Federal Reserve acts as a
banker's bank by A regulating the amount of tax
each person pays
B regulating the amount of
money in circulation
C prosecuting counterfeiters
D coining money
Which of the following is the
agency that regulates the supply
of money in the United States?
A Federal Reserve System
B National Bar Association
C North American Free Trade
Agreement
D Federal Trade Commission
When the Federal Reserve
System wants to slow the
economy it does all of the
following EXCEPT A raise income taxes
B raise the discount rate
C sell government securities
D increase reserve rates