QUESTION 10 1 points Save Answer The legislation that separated commercial banking from the securities industry is known as the O National Bank Act O Federal Reserve Act O Glass-Steagall Act O McFadden Act. QUESTION 11 1 points Save Answer The Fed is an active participant in money markets mainly because of its responsibility to O lower borrowing costs to encourage capital investment. O control the money supply O increase the interest income of retirees holding money market instruments. O assist the Securities and Exchange Commission in regulating the behavior of other money market participants. QUESTION 12 1 points Save Answer One way for the Federal Reserve to drain excess reserves from the banking system is to, buy government securities O lower the discount rate O sell government securities O lower the reserve ratio. QUESTION 13 1 points Save Answer The interest rate borrowers pay on their mortgages is determined by O current long-term market rates. O the term O the number of discount points. O all of the above. QUESTION 14 1 points Save Answer Which of the following is not a proposal for insuring that sufficient funds will be available to provide Social Security benefits to future retirees? Raise the maximum income cap on which workers and employers are taxed. O Provide more generous annual cost of living increases. Raise the minimum age for receiving benefits. O Reduce the amount of future benefits. QUESTION 15 1 points Save Answer During the early years of an amortizing mortgage loan, the lender applies O most of the monthly payment to the outstanding principal balance. all of the monthly payment to the outstanding principal balance. O most of the monthly payment to interest on the loan. O all of the monthly payment to interest on the loan the monthly payment equally to interest on the loan and the outstanding principal balance