Federal Reserve

Increasing the reserve requirement has which of the following results:

• More is lent out and more is paid in interest
• More is lent out and less is paid back in interest
• Less is lent out and more is paid in interest
• Less is lent out and less is lent in interest.

In a recession, the Fed would likely

• Increase the supply of money in the economy
• Decrease the supply of the money in the economy

If the United States is experiencing inflation, the Fed will likely

• Increase the supply of money in the economy
• Decrease the supply of money in the economy

The Fed keeps a certain amount of money out of circulation. This is referred to as....

• Reserve requirement
• Emergency Fund
• Stockpile
• Hoard

How long is the life expectancy of a $10 bill?

• 22 months

• 2 years

• 3 years

• 9 years

How long is the life expectancy of most coins?

• 30 years

• 2 years

• 3 years

• 9 years

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

The Fed keeps a certain amount of money out of circulation. This is referred to as....

• Reserve requirement
• Emergency Fund
• Stockpile
• Hoard

The tools and strategies used to stabilize the economy

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

Which of the following are goals of the Federal Reserve?

• Promote economic growth through managing the money supply

• Promote higher education by keeping college loan interest rates low

• Keep inflation at a low and steady rate

• Develop strict barriers to entry into the banking system