Cards in this guide (11)
Which of the following best explains why raising the required reserve ratio results in a decrease in the money supply
When the required reserve ratio is high, banks must loan out a
smaller portion of their reserves, resulting in fewer loans.
Which best describes the use of open market operations to influence the money supply
The Fed buys and sells Treasury bonds in the bond market.
A system involves the direct exchange of goods and services without the use of money as a medium of exchange
A _barter_ system involves the direct exchange of goods and
services without the use of money as a medium of exchange.
An increase in the standard of living results from an increase in what
an increase in standard of living comes from increase in income. An increase in national income will increase the standard of living of the people of that nation.
Income
What best explains why the money is increased when Fed buys treasury bonds
There is no following provided?
Which of the following best describes how the federal reserve bank keeps banks during a bank run
The Federal Reserve Bank manages the U.S. economy by controlling
the money supply.
Which of the following terms best describes the process by which the government controls interest rates and the money supply in order to influence the economy
Which of the following best explains how a barter system works Apex
Goods and services are exchanged without the use of money
Which of the following actions is most likely to result in an increase in the money supply
The Fed buys millions of dollars in Treasury bonds
Which of the following accurately describes the effect of a situation of scarcity
What of the following best explains why treasury bonds have an effect on the size of the money supply
The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits. APEX
