Economic Indicators and Interest Review

Front

Using the Rule of 72, calculate how many years it will take for $2,000 to double if the interest rate is 4.5%.

Back

16 years

Front

What are the two main functions of the Federal Reserve?

Back

fight inflation and maintain full employment

Front

What entity controls the interest rates? Options: Secretary of Treasury, Federal Reserve, Monetary Building Organization, Central Banks

Back

Federal Reserve

Front

Currently, who is the Federal Reserve Board Chair?

Back

Jerome Powell

Front

What are two big components of the Employment Situation Report (Jobs Report)?

Back

newly created jobs and unemployment rate

Front

Inflation is always occurring, with an average of _____ each year being considered normal and healthy.

Back

2%

Front

Generally, when the Consumer Price Index (CPI) is high, what happens to the interest rates?

Back

increase

Front

The PMI survey provided by the Institute for Supply Management indicates a point value above which signifies growth and below which signifies a slowing economy. What is that number?

Back

50

Front

If you have $500 to invest, which scenario would yield you the most return? Options: 5% compounded semi annually for 5 years, 5% compounded annually for 5 years, 5% simple interest for 5 years, 5% compounded quarterly for 5 years

Back

5% compounded quarterly for 5 years

Front

According to recent news, what is the Federal Reserve expected to do at their next meeting?

Back

lower interest rates