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Economics

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Nat Wisozk

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Cards in this guide (19)
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.

Put the phases of the business cycle in the correct order in which they follow a boom

depression

recovery

boom

recession

Final phase

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.

Consecutive periods of deflation are also known as

recessions

If there is an increase in the money supply that causes money to lose its purchasing power and prices to rise

It loses purchasing power.

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

During a period of deflation the graph of the consumer price index CPI will fall

True

Which conditions is most likely to exist when there is a general slowdown of the economy

Less inflation.

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 there is an increase in the money supply that causes money to lose its purchasing power and leads to inflation what happens to prices

they rise

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

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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