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Economics

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Madalyn Pagac

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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

Gross National Product

Which of the following situations could cause a budget deficit for the federal government

there is a recession

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

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

rose by 1 percent

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 _____.

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