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Economics

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Micaela Wilkinson

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Cards in this guide (20)
How does bankruptcy affect interest rates on loans and credit cards

It cause interest rates to rise.

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 is a trade-off

A trade-off is an alternative that we sacrifice when we make a decision.

What is the Role of central bank in implementing monetary policy

inside lag

What monetary policy should be implemented to correct an inflationary economy

a sale of bonds to decrease the money supply, increasing interest rates, these are recessionary measures used to slow down the economy.

Which of the following tools is an example of monetary policy

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

How can population changes affect demand for certain goods

immediate demand for a good will go up if it's price is expected to rise.

this is how population changes affect demand for certain goods.

What is the effect of the interaction of buyers and sellers on a market

agreement on the price and quantity traded

What is the function of a bank examiner

to make sure the banks are obeying laws and regulations

Government programs that protect people experiencing unfavorable economic conditions are

Safety Net!

In a traditional economy what are the economic decisions based largely on

Customs and traditions.

What is an example of scarcity rather than shortage

A person wants an endless supply of everything but cannot have it.

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

Which of the following is most important characteristic of an entrepreneur

hard work and patience

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 belief that the money supply is the most important factor in macroeconomic performance

monetarism

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.

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

It is not safe to drink or eat chemicals.

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