Money Mystery Chs 13 - 18

Front

What is one of the Federal Reserve’s main functions? Options: a) Printing money directly for citizens, b) Controlling interest rates, c) Setting prices for goods, d) Lending to private businesses

Back

Controlling interest rates

Front

Why do governments sometimes print more money?

Back

To pay off debt

Front

What happens when too much money is in circulation?

Back

Inflation occurs

Front

According to Chapter 16, what is a major risk of high inflation? Options: a) Wages increase rapidly, b) Savings lose value, c) The stock market never changes, d) Governments become more powerful

Back

Savings lose value

Front

The gold standard was still in use by the end of Chapter 18.

Back

False

Front

Inflation benefits people who save their money.

Back

False

Front

The book suggests that financial instability is always caused by poor government decisions.

Back

False

Front

Deflation means that prices are increasing rapidly.

Back

False

Front

Interest rates can influence both inflation and economic growth.

Back

True