Cards in this guide (23)
Which of the following best explains why raising the required reserve ratio results in a decrease in the money supply
When the required reserve ratio is high, banks must loan out a
smaller portion of their reserves, resulting in fewer loans.
Which best describes the use of open market operations to influence the money supply
The Fed buys and sells Treasury bonds in the bond market.
Which of the following statements best describes how investors behave when engaged in socially responsible investing
They invest in companies with a business model and social
mission that they support
What accurately describes the process of currency exchange
Money from one country is bought using money from another
country.
Which of the following is one of the major factors determining the level of wages
The Law of Supply and Demand.
An increase in the standard of living results from an increase in what
an increase in standard of living comes from increase in income. An increase in national income will increase the standard of living of the people of that nation.
Income
What best explains how the invention of money affected the barter system
The invention of money supplemented the barter system by
providing a nonperishable medium of exchange.
What is one of the risks of being a stockholder
Stockolders are not guaranteed a return on their
investments.
Which of the following is one disadvantage for a company that goes public
The pressure to make profits is increased.
Which of the following factors would be most likely to lead to an successful IPO
A company offering an IPO during a bull market is likely to lead
to a successful IPO.
Monetary policy in the US is carried out primarily by what agencies
The level of volatility in a market measures what
How quickly prices go up and down in that market.
Which of the following most accurately explains why money differs from commodity money
Fiat money only has value as a medium of exchange. Apex
Which best describes the purpose of an initial public offering IPO
The first sale of stock to the public
or To raise money to fund a company's activities.
Which of the following tends to result in a decrease in the selling price of houses in area
An increase in mortgage rates.
Which of the following best describes how the federal reserve bank keeps banks during a bank run
The Federal Reserve Bank manages the U.S. economy by controlling
the money supply.
Which of the following is a disadvantage of debt financing
Banks are usually unwilling to fund a business in its early
stages of development. Banks generally don't want to take the risk
that a business will fail and default on its debt obligations.
Which of the following actions is most likely to result in an increase in the money supply
The Fed buys millions of dollars in Treasury bonds
Which of the following accurately describes the effect of a situation of scarcity
Ask us of the following most accurately explains why fiat money differs from commodity money
Fiat money has value bc the gov. declares that it has value.
What of the following best explains why treasury bonds have an effect on the size of the money supply
The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits. APEX
Which of the following is an example of expansionary fiscal policy
Match each organization with its correct relationship to the government
A. Social security _ government agency
B. U.S. Postal Service _ government corporation
C. Boeing _ government contractor
