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Katelyn Kuhn

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Cards in this guide (20)
What is fractional reserve banking

Fractional-reserve banking is what keeps the banks running. They must keep a certain amount of money in reserve (usually in the form of a deposit with the central bank), so that people can withdrawal their deposits.

What will be a good sentence for the bartering

my mom once was bartering at stripendales

The consumer price index is a measure of

inflation

The us government borrows money by

Issuing Treasury Bonds and other government-backed securities

The three tools the Federal Reserve uses to enact monetary policy are

the three tools the Federal Reserve uses to enact monetary policy are setting the interest rate charged to commercial banks on loans from the Federal Reserve. Setting the reserve rate. The buying and selling of Treasury bonds and other government-backed securities

What will be the effect on the interest rate the bank charges its customers for a loan if the bank buys a Treasury Bond from the Federal Reserve

The interest rate will increase since there are fewer available funds for the bank to loan.

Which of these conditions must have existed during the second four-year period

Deflation

Which of the ranges below correspond to a recession

the correct answer for apex is 1937-1939.

Approximately how much would the house have cost in 1980 when the CPI was 82.4

$62,200

Let r equals 07 br the reserve rate which of the following is mant multiplier

1

------

0.07

What does it mean to be a unit of account

The item is divisible and each unit is worth the same

If the federal reserve sells 40 000 in treasury bonds to a bank with 5 interest what is the immediate effect on the money supply

If the federal reserve sells $40,000 in treasury bonds to a bank with 5% interest the immediate effect on the money supply is an decrease of $40,000.

If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.

If the Federal Reserve sets the reserve rate to 5 what is the resulting money multiplier

It’s 20

If the federal reserve sets the reserve rate to 4 what is the resulting money multiplier

it is 25 apex

If the reserve rate is 7 and a bank receives a deposit of 9000 how much of the 9000 is the bank free to lend

$8370

If the federal reserve sells 50000 in Treasury bonds to bank at 6 interest what is the immediate effect on the money supply

it is decreased by 50000

Match each of the terms below with an example that fits the term.

Idk

I dont know

what is the ________ of the united states is the federal reserve.

central bank.

from 1980 to 1990, the consumer price index (cpi) increased from 82.4 to 130.7 if a gallon of apple juice cost $0.95 in 1980 and the price of apple juice increased at the same rate as the cpi from 1980 to 1990 approximately how much did a gallon of apple

$1.51

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