Cards in this guide (21)
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 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.
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 changes were made to the Federal Reserve system in 1935
The federal reserve system was given more centralized power
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
What is it called when banks record which account gives up mpney and which account receives money when a customer writes a check
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
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 can be expected when members of the baby boom generation begin to retire in large numbers
What is the federal reserve best known for
For regulating the nations money supply
Who appoints the members of the Board of Governors of the Federal Reserve
A depreciation in the external value of the currency is likely to...
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 _____.