1. The Federal Reserve System Trivia 11d Newell

2. Which of the following is the term for the interest rate that the Federal Reserve charges banks to borrow money? ASavings rate BAvailable funds rate CCirculation rate DDiscount rate

3. The Federal Reserve System (Fed) does all of the following EXCEPT - Asells government securities Bwrites new banking laws Cregulates the nation's money supply Dcontrols interest rates

4. The term for money that the Federal Reserve system requires a bank to keep and not loan to consumers is called a - Asurcharge Breserve Ctax Dsurplus

5. Which of the following would likely slow the economy? AIncreasing the available money supply BDecreasing the reserve requirement CRaising the discount rate DBuying government securities

6. The Federal Reserve System (Fed) issues - Aloans to corporations Bcurrency Cindictments for counterfeiting Dproclamations

7. When the Federal Reserve System wants to stimulate the economy it - Aincrease reserve rates Bincreases the reserve date Csells government securities Dlowers the discount rate

8. The FED stands for - AFederalists BFunding Education Dividends CFederation DFederal Reserve System

9. In order to control inflation (going too fast), the government is likely to - Adecrease interest rates Breduce the money in circulation Cincrease interest rates Ddecrease corporation profits

10. What would be the likely outcome if the Federal Reserve raised its interest rates to member banks? APeople will purchase more capital goods. BPeople will be more likely to borrow money. CThe amount of money in circulation will be restricted. DMore businesses will be formed.

11. To ease a recession (going too slow), the government is likely to change its fiscal policy by - Areducing the money in circulation Bspending more money Cdecrease corporation profits Dspending less money

12. The Federal Reserve acts as a banker's bank by - Aregulating the amount of tax each person pays Bregulating the amount of money in circulation Cprosecuting counterfeiters Dcoining money

13. Which of the following is the agency that regulates the supply of money in the United States? AFederal Reserve System BNational Bar Association CNorth American Free Trade Agreement DFederal Trade Commission

14. When the Federal Reserve System wants to slow the economy it does all of the following EXCEPT - Araise income taxes Braise the discount rate Csell government securities Dincrease reserve rates