Econ 2 Review

Front

The Federal Reserve System is made up of...

Back

a Board of Governors and 12 federal reserve banks nationwide

Front

Which of the following is NOT a function of the Federal Reserve System?
to regulate the soundness of banks,
to ensure the safety of deposits,
to give low interest loans to individuals and businesses,
to keep inflation low and stable

Back

to give low interest loans to individuals and businesses

Front

Who can receive financial services from the Federal Reserve banks?

Back

the Federal government and other banks

Front

The central bank of the United States is known as..

Back

the Federal Reserve System

Front

An important function of Financial institutions is to...

Back

receive deposits and make loans

Front

Private Financial institutions help facilitate the exchange of money between...

Back

savers and borrowers

Front

How do private financial institutions encourage saving and investing?

Back

by paying interest on deposits

Front

Money makes it easier to trade. Which function of money is described?

Back

medium of exchange

Front

When the government issues coins and currency, people accept it in exchange for goods and services because...

Back

people have confidence in the government

Front

Money makes it easier to save and invest. Which function of money is described?

Back

store of value