Question 6 Federal Reserve Bonds

What happens to the money supply when the Federal Reserve BUYS BONDS?

What happens to the money supply when the Federal Reserve SELLS BONDS?

Question 7 Federal Reserve Targets

What is the target for the unemployment rate at the Federal Reserve?

What is the target for the inflation rate at the Federal Reserve?

Questino 8 Money History

What was the first type of money?

What is one of the newest forms of money?

Question 9 Money Characteristics

List three characteristics that money must have.

Question 10 Excess Reserves

In November, 2008 the Federal Reserve began to pay interest on reserves

held at the Federal Reserve.

What effect would this have on excess reserves?

Would banks generally favor or oppose this action?