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Economics

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Ted Haley

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Cards in this guide (19)
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.)

How well did the Federal Reserve Banks perform during the Great Depression

The federal reserve banks did wellduring the depression due to regulations. The bank ended the depression

Which of the following tools is an example of monetary policy

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

How many directors are on the Boards for each of the 12 Federal Reserve Banks

Each of the 12 Reserve Banks is subject to the supervision of a ninemember board of directors (board). Six of the directors are elected by the member banks of the respective Federal Reserve District (District), and three of the directors are appointed by the Board of Governors. Most Reserve Banks have at least one Branch, and each Branch has its own board of directors. A majority of the directors on a Branch board are appointed by the Reserve Bank, and the remaining Branch directors are appointed by the Board of Governors.

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.

What changes were made to the Federal Reserve system in 1935

The federal reserve system was given more centralized power

What terms relates to money and banking

monetary policy
monetary policy

A+

What change in monetary policy could eventually cause overborrowing and overinvestment

a decrease in the money supply

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

Check Clearing

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

Truth in lending laws require

sellers provide full and accurate information about loan terms

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

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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