Question
1.Which event involves a function of the Federal Reserve System? To increase employment, the Fed channels currency into an ambitious space-exploration program. To increase national
1.Which event involves a function of the Federal Reserve System?
To increase employment, the Fed channels currency into an ambitious space-exploration program.
To increase national security, the Fed extends loans to technology development companies.
To promote economic growth, the Fed lifts home-loan restrictions on people with student-loan debt.
To promote price stability, the Fed breaks up a monopolistic international corporation.
2.Through which tool does the Federal Reserve affect money available for banks to loan?
Discount rate
Money multiplier
Open-market operations
Reserve requirement
3.Which of the following actions would the Federal Reserve most likely take during an economic recession?
Increase reserve requirement
Raise interest rates
Lower discount rate
Sell government securities
4.Which of the following actions would the Federal Reserve most likely take to rein in spiraling inflation?
Generate more money
Increase reserve requirement
Lower the discount rate
Buy of government securities
5.Which of the following actions would the Federal Reserve most likely take to reduce unemployment?
Raise discount rate
Increase reserve requirement
Restrict money supply
Buy government securities
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