Cards in this guide (23)
How does bankruptcy affect interest rates on loans and credit cards
It cause interest rates to rise.
What is a Treasury Note
Treasury Notes (T-Note) matures in two to ten years. They have a
coupon payment every six months, and are commonly issued with
maturities dates of 2, 3, 5 or 10 years, for denominations from
$1,000 to $1,000,000
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 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.)
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 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 the annual income earned by US owned firms and US citizens referred to as
Which of the following situations could cause a budget deficit for the federal government
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)
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
Julia invested 3000 at an annual interest rate of 5 percent from last year to this year there has been a 4 percent inflation rate after a year the purchasing power of her investment
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.
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 _____.