The FED would expect that if investors shift funds out of domestic US deposit accounts (out of the US), this would ____the supply of loanable funds, and place ____ pressure on interest rates.

a. increase; downward b. increase; upward

c. decrease; upward d. decrease; downward

FED expects if the aggregate demand for loanable funds increases with an equal corresponding ___ in aggregate supply, there will be a(n) ___ of loanable funds.

a. increase; shortage b. increase; equal amount

c. decrease; abundance d. decrease; surplus

Which of the following is a major component of the Federal Reserve System?

a. Senate Banking Committee b. Securities and Exchange Commission

c. FDIC d. Federal Open Market Committee

Which of the following is the activity associated with the initial PRIMARY purpose of Fed District banks?

a. providing loans to member banks b. clearing checks

c. matching lenders & borrowers for loans d. replacing old currency