Federal Reserve, Money, and Interest (B3&4)

A decrease in the money supply often causes prices to rise.

• True

• False

The idea that money is created through loans

• butterfly effect

• multiplier effect

• banking effect

• money effect

Board of Governor's member serve for how long?

• 4 years

• 10 years

• 14 years

• lifetime

Which law prohibits bill collectors from using deceptive or abusive tactics?

• Truth in Lending Act

• Equal Credit Opportunity Act

• Fair Credit Reporting Act

• Fair Debt Collection Practices Act

District Reserve Banks are spread out over how many regions?

• 10

• 12

• 14

• 15

Which action would help stimulate the economy?

• raising taxes

• lowering taxes

Which action would help stimulate the economy?

• lowering interest rates

• raising interest rates

Most financial transactions at a bank involve the physical movement of large amounts of cash.

• True

• False

The value of the US dollar is backed up by what commodity?

• gold

• silver

• diamonds

• none of these

Which law gives consumers three days to change their mind about a loan?

• Truth in Lending Act

• Equal Credit Opportunity Act

• Fair Credit Reporting Act

• Fair Debt Collection Practices Act