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? ASavings rate BAvailable funds rate CCirculation rate DDiscount rate.
The Federal Reserve System Trivia
Which of the following is the term for the interest rate that the Federal Reserve charges banks to borrow money?ASavings rateBAvailable funds rateCCirculation rateDDiscount rate
The Federal Reserve System (Fed) does all of the following EXCEPT -Asells government securitiesBwrites new banking lawsCregulates the nation's money supplyDcontrols interest rates
The term for money that the Federal Reserve system requires a bank to keep and not loan to consumers is called a -AsurchargeBreserveCtaxDsurplus
Which of the following would likely slow the economy?AIncreasing the available money supplyBDecreasing the reserve requirementCRaising the discount rateDBuying government securities
When the Federal Reserve System wants to stimulate the economy it -Aincrease reserve ratesBincreases the reserve dateCsells government securitiesDlowers the discount rate
In order to control inflation (going too fast), the government is likely to -Adecrease interest ratesBreduce the money in circulationCincrease interest ratesDdecrease corporation profits
What would be the likely outcome if the Federal Reserve raised its interest rates to member banks?APeople will purchase more capital goods.BPeople will be more likely to borrow money.CThe amount of money in circulation will be restricted.DMore businesses will be formed.
To ease a recession (going too slow), the government is likely to change its fiscal policy by -Areducing the money in circulationBspending more moneyCdecrease corporation profitsDspending less money
The Federal Reserve acts as a banker's bank by -Aregulating the amount of tax each person paysBregulating the amount of money in circulationCprosecuting counterfeitersDcoining money
Which of the following is the agency that regulates the supply of money in the United States?AFederal Reserve SystemBNational Bar AssociationCNorth American Free Trade AgreementDFederal Trade Commission
When the Federal Reserve System wants to slow the economy it does all of the following EXCEPT -Araise income taxesBraise the discount rateCsell government securitiesDincrease reserve rates