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Economics

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Forrest Brakus

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Cards in this guide (26)
How does bankruptcy affect interest rates on loans and credit cards

It cause interest rates to rise.

What is a Treasury Note

Treasury Notes (T-Note) matures in two to ten years. They have a coupon payment every six months, and are commonly issued with maturities dates of 2, 3, 5 or 10 years, for denominations from $1,000 to $1,000,000

What are the three ways the Federal reserve can change the money supply

The Federal Reserve can change the money supply with 1) open market operations, 2)making changes in the reserve ratio, and 3) making changes in the discount rate. Of the three policies the open market is the most common.

What technology do lawyers use

Computers, telephones, internet, and other office technology but they probably also use cars, planes and household technologies

What problem does tight money policy combat

tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.)

What is the difference between Treasury Bond and Treasury Note

The difference is the length of time to maturity. Treasury Notes mature in 10-years Treasury Bonds mature in 30-Years

What monetary policy should be implemented to correct an inflationary economy

a sale of bonds to decrease the money supply, increasing interest rates, these are recessionary measures used to slow down the economy.

Which of the following tools is an example of monetary policy

the government restricts the amount of money that banks can lend.

A supply-side economist would be in favor of what

Cutting Taxes

In contrast with classical economics keynesian economics does what

In contrast with Classical economics, Keynesian economics takes a broader view of the economy

In the United States what does the general level of a family's income have to do with the amount of cash the family is likely to hold

In America, it is accepted that the more money someone makes, the more they should have in savings or invested. This may not always be the case, but it is believed to be.

Who is responsible for securing US borders and ports

the department of Homeland Security

What are the main components in the Federal Reserve banks

The Federal Open Market Committee. The Federal Open Market Committee (FOMC) consists of seven Federal Reserve Board members and five Federal Reserve bank representatives. The FOMC sets monetary policy by.

How does a bond sale by the fed affect the money supply

When the Federal Reserve buys a bond, the amount of money outside the private sector increases. This is money that exists in the forms of cash, coins, and bank reserves.

Why is the monetary policy administered by the federal reserve the principal method of softening the effects of the business cycle

Because there are more political complications with determining and implementing fiscal policy.

What is the annual income earned by US owned firms and US citizens referred to as

Gross National Product

Which of the following situations could cause a budget deficit for the federal government

there is a recession

What is the abbreviation for the research arm of the federal reserve

FAC (Federal Advisory Councel)

Who is least likely to belong to a union

a computer analyst at a high-tech firm

Truth in lending laws require

sellers provide full and accurate information about loan terms

Julia invested 3000 at an annual interest rate of 5 percent from last year to this year there has been a 4 percent inflation rate after a year the purchasing power of her investment

rose by 1 percent

What is the federal reserve best known for

For regulating the nations money supply

What is the money multiplier formula

The money multiplier formula is the amount of new money that will be created with each demand deposit, calculated as 1 ÷ RRR.

If the Fed were to impose a slight increase in the required reserves ratio there would be .

If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.

What is the discount rate for a stereo priced at 399.99 but on sale for 329.99 Round the discount rate to the nearest tenth of a percent

It is 17.5%.

The Laffer curve predicts the effects of changes in the tax rate on which of the following

tax revenues

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