There is an increase in economic activity when the Federal Reserve Board:
Group of answer choices
does the hokey-pokey.
raises the discount rate.
increases reserve requirements.
relaxes credit controls.
sells government securities.
1. D. Relaxes credit controls
While raising the discount rate, increasing reserve requirement
and selling government securities, slow down economic activity,
relaxing credit control would allow it to improve.
There is an increase in economic activity when the Federal Reserve Board: Group of answer choices...
1. Which of the following statements is true of money? It is anything accepted in exchange for goods and services. It is not a gold-backed currency. It is not readily convertible to precious metal. It needs to be accompanied by a government "note" or promise to be considered valid. It is exclusively dispatched through automated teller machines. 2. There is an increase in economic activity when the Federal Reserve Board: Group of answer choices does the hokey-pokey. raises the discount...
1) What is real GDP? Group of answer choices It is the total market value of final goods and services produced in an economy in a given year. It is a sustained increase in the average price level of goods and services. It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation. It is an increase in the money supply. 2) The unemployment rate is: Group of...
QUESTION 1 If the Board of Governors of the Federal Reserve increases the reserve requirement then the money supply will decline. True False QUESTION 2 If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to 10 times its excess reserves. 10 percent of its excess reserves. its excess reserves. its total reserves. QUESTION 3 In the simple deposit expansion model, an expansion in checkable deposits of...
Which of the following statements is positive? Group of answer choices When the Federal Reserve increases the money supply, interest rates decrease. Large budget deficits should be avoided. A tax cut that benefits low-income households is acceptable. Higher taxes are needed to support education. The standard of living in an economy is best measured by: Group of answer choices output per person. average labor productivity. total output. the inflation rate. If average labor productivity increases while population and the number...
The Federal Reserve adjusts interest rates indirectly through which of tools? Group of answer choices federal tax policy reserve requirement open market operations discount rate
The regional Federal Reserve Banks Group of answer choices are each headed by a member of the Board of Governors. have more voting members on the FOMC than does the Board of Governors. regulate banks in their regions. are not allowed to make loans to banks in their region.
1. Traditional monetary policy is conducted by managing : Group of answer choices the prime rate. mortgage rates. the federal funds rate. the discount rate. 2. What is required to achieve the Federal Reserve's broad goal of achieving a safer, more flexible financial system? Group of answer choices Safe and sound financial institutions A strong infrastructure for payments Both A and B Congressional oversight of the banking system. 3. A unified national currency was established and a heavy tax was...
When the Federal Reserve seeks to raise the targeted federal funds rate, it _____. Multiple Choice buys government securities to decrease the excess reserves available for overnight loans buys government securities to increase the excess reserves available for overnight loans sells government securities to decrease the excess reserves available for overnight loans sells government securities to increase the excess reserves available for overnight loans
If the Federal Reserve Bank sells $130 million worth of securities to a commercial bank, then the reserves in the economy ____ by $130 million and the monetary base ____ by $130 million. Group of answer choices decrease; decreases decrease; increases increase; decreases increase; increases
1) The power within the Federal Reserve was effectively transferred to the Board of Governors by Select one: A. Supreme Court decisions in the 1960s. B. the Treasury-Federal Reserve Accord of 1951. C. the Depository Institutions Deregulation and Monetary Control Act of 1980. D. the Federal Reserve Act of 1935. 2) The monetary base consists of Select one: A. government securities held by the Fed and discount loans. B. currency in circulation and reserves. C. government securities held by the...