#10

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1. -setting the discount and interest rates -establishing reserve requirements for banks -buying and selling US government securities All of these are ways in which the Federal Reserve system can

• control the stock market
• regulate the money supply
• challenge Presidential power
• decrease consumer spending

2. The United States government has decided to issue federal income tax rebates to taxpayers, What is the MOST LIKELY goal of these rebates?

• increased consumer spending
• increased transfer payments
• reduction in the employment rate
• reduction in the military budget

3. The Federal Reserve wants to increase the money supply in the United States. What is the Federal Reserve likely to do to accomplish this?

• reduce the discount rate
• sell securities on the open market
• increase the reserve requirements for banks
• require banks to hold a reserve for all types of deposits

4. What is a main goal of the Federal Reserve in its monetary policy?

• lowering taxes
• to curb recessions
• increase government spending
• regulation of the stock market

5. If the federal government spends more than it collects in revenue, then

• it is running a surplus
• it is running a deficit
• the inflation rate should decline
• the unemployment rate may increase

6. What consumer behavior is the Federal Reserve Board trying to encourage when it implements a loose monetary policy?

• increased saving and spending
• decreased saving and spending
• increased saving and reduced spending
• decreased saving and increased spending

7. Aggregate demand in the U.S. is influenced by both

• inflation and debt
• monetary policy and det
• inflation and fiscal policy
• monetary policy and fiscal policy

8. -Atlanta -Boston -Cleveland -Dallas All of these represent

• state capitals
• cities with major ports
• U.S Court of Appeal cities
• Federal Reserve System districts

9. Although the members of the Board of Governors of the Federal Reserve System are appointed by the president, the Board does not receive funding from Congress. The seven members serve a 14 year term, and report to the Speaker of the House once a year. This MOST LIKELY result in

• more oversight from the executive branch
• more oversight from the legislative branch
• significant control by the Treasury Department
• relative independence of the Federal Reserve System