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Nakia Fritsch

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Cards in this guide (28)
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 technology do lawyers use

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

A sentence for inflammatory

The candidate made an inflammatory speech that incensed all those who heard it.

What is the crowding-out effect

A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect

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 does lender of last resort mean with respect to the federal reserve

it lends money to banks or anyother 'institution' in financial difficulty.

Which of the following is an argument in favor of lowering the levels of personal income tax

consumers will spend more money in the market.

What are the advantages and disadvantages of protecting an infant industry

A protected infant industry lacks the incentive to become more effient and competitive,

and once it's protected it is difficult to take the protection away.

It's only protected because the mature industry wouldn't take it out, the infant industry needs time to grow up and learn.

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 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.

What were the benefits of investment in new technologies

These new technology investments resulted in a boost in productivity and lower unit costs of production as the number of employees in the industry declined from 9,759 in 1997 to 5,434 in 2000.

When the Fed buys government bonds and other securities on the open market

Open-market operations

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)

Why did Perestoika failed to improve the Soviet economy for all of the following reasons EXCEPT what

the interest

How do you change federal funds rate

The federal funds rate is the interest rate banks charge on loans in the federal funds market. The federal funds rate is not set administratively by the Fed. Instead, the rate is determined by the supply of reserves relative to the demand for them.

How much did the French government spend servicing it's debt in 1789

20 trillion american dollors in debt.

What does a fractional reserve banking system mean

ensures growth in the economy

What can be expected when members of the baby boom generation begin to retire in large numbers

increased deficits

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.

Who appoints the members of the Board of Governors of the Federal Reserve

the U.S. President

A depreciation in the external value of the currency is likely to...

increase inflation

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 role of the Federal Open Market Committee FOMC

It makes key decisions about interest rates and the growth of the United States money supply.

After the fall of the economy in 1929, what did classical economists believe to be the solution to the Great Depression

wait for the economy to achieve equilibrium

Which of the following statements best describes a stage in the crowding-out effect

The government issues treasury bonds and spends the revenue on a new highway system.

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