Unit 3B-2

Front

When interest rates rise, the number of loans made by banks will

Back

decrease

Front

In response to a rising Consumer Price Index, the Federal Reserve could: raise taxes, lower government spending, lower the discount rate, sell securities on the open market

Back

sell securities on the open market

Front

If the Federal Reserve System wanted to stimulate the U S economy and reduce unemployment, it would

Back

cause interest rates to decrease because low interest rates encourage business growth and expansion

Front

If the economy is in a recession, the Federal Reserve could do all of the following EXCEPT: Lower taxes, Lower the discount rate, Buy securities, Lower the required reserve ratio

Back

Lower taxes

Front

According to the following information: National Debt: 22 trillion dollars, Budget Revenue: 10 trillion, Budget Expenditures: 9 trillion, did this nation increase, decrease, or eliminate their national debt?

Back

Decrease their debt

Front

Which of situation represents money being used a Unit of Account? Options: U.S. currency was used to purchase a home, The price of the home deterred buyers with middle class incomes to purchase it, Sara saves 20% of her income for later use

Back

The price of the home deterred buyers with middle class incomes to purchase it

Front

A regressive tax has more of a negative effect on which group of people? Options: Wealthy people, Lower Income people, Middle Class families

Back

Lower Income people

Front

Which one is NOT a function of money?
Store of Value, Standard of value/ unit of account, Medium of exchange

Back

Printing more to pay of debts