Cards in this guide (22)
How does bankruptcy affect interest rates on loans and credit cards
It cause interest rates to rise.
What are the three ways the Federal reserve can change the money supply
The Federal Reserve can change the money supply with 1) open
market operations, 2)making changes in the reserve ratio, and 3)
making changes in the discount rate. Of the three policies the open
market is the most common.
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.)
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.
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 change in monetary policy could eventually cause overborrowing and overinvestment
a decrease in the money supply
What is it called when banks record which account gives up mpney and which account receives money when a customer writes a check
What are the interest rates that the federal reserve bank charge on loans they make to commercial banks and thrifts are called what
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 belief that the money supply is the most important factor in macroeconomic performance
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.
In The Recent Past The Federal Reserve Has Set The Discount Rate
above the federal funds rate
When dealing with the chemicals in the laboratory which of the following is not safe
It is not safe to drink or eat chemicals.
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 _____.