19. What does a flat or inverted yield curveindicate? A. That interest rates will go up B. An improving economy _C. An economic downturn. D. Interest rates are about to drop. 20. What function does the Federal Reserve District Banks Serve? A. Control of the money supply B. Control of the interest rates c. Facilitate operations within the banking system. _D. None of the above 21. The Federal Open Market Committee (FOMC) primary goals are: A Full employment and an expanding money supply B. Stable prices, and Full employment C. Stable prices and an expanding money supply D. None of the above 22. The primary toolsthe FOMC usesis in meeting its goals are A Open market operations to buy and sell Treasury Securities _B. Adjusting reserveratio required by member banks C. Adjusting the rate the Fed charges at the discount window D. All of the above During the 2008 credit crisis the Fed went beyond its normal open market operations to improve economic conditions. Those actions included the following: A Loans to facilitate the rescue Bez Stearns a non bank securities firm B. Purchased Mortgage back securities C. Purchased asset back bonds which were secured by loans _D. All of the above 24. Mi is the measure of money that includes: _A Currency and checking deposits B. Over night repurchase agreements _C. Mutual funds D. Small time deposits 25. The purchase of securities by the fed: A Decreases the supply of loanable funds in the banking system B. Increases the supply of loanable funds in the banking system C. Not change the supply of loanable funds in the banking system D. None of the above 23