QUESTION 1

The twelve Federal Reserve Banks

		issue new currency
		act as liaisons between the business community and the Federal Reserve System
		withdraw damaged currency from circulation
		all of the above

QUESTION 6

If the Fed increases the reserve requirement, the economy tends to be

		stimulated
		held back
		controlled
		dynamic

QUESTION 8

In the money market, investment companies

		trade on behalf of commercial accounts
		maintain liquidity to meet demands
		trade money market mutual funds
		use money market instruments to maintain margins

QUESTION 9

Which statement is true regarding treasury bills?

		they sell in minimum denominations of $1 million
		they are issued at a discount from par
		they are overnight investments (only last for 24 hours)
		they are unsecured promissory notes