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Economics

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Gabriella Roob

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Cards in this guide (18)
How long does it take for a check to clear

It generally takes 2-3 days from the time the check is deposited until the time it clears. This can vary from bank to bank.

What technology do lawyers use

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

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 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.

Which of the following tools is an example of monetary policy

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

What is the function of a bank examiner

to make sure the banks are obeying laws and regulations

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.

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

Open-market operations

What is it called when banks record which account gives up mpney and which account receives money when a customer writes a check

Check Clearing

What are the interest rates that the federal reserve bank charge on loans they make to commercial banks and thrifts are called what

Federal Funds Rate

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

FAC (Federal Advisory Councel)

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.

What does a fractional reserve banking system mean

ensures growth in the economy

What is the federal reserve best known for

For regulating the nations money supply

In The Recent Past The Federal Reserve Has Set The Discount Rate

above the federal funds rate

When dealing with the chemicals in the laboratory which of the following is not safe

It is not safe to drink or eat chemicals.

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 _____.

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