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Exam 20: Money,financial Institutions,and the Federal Reserve

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Question 151

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By reducing the reserve requirement,the Fed intends to increase the money supply.

A) True
B) False

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Question 152

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The Fed announces that it intends to implement policies to increase interest rates.Which of the following correctly identifies the most likely result of higher U.S.interest rates?

A) More money will flow into the United States from foreign investors.
B) The economy will experience an increase in business investment spending.
C) The value of the dollar will fall relative to other currencies.
D) The rate of inflation will increase.

E) A) and C)
F) B) and C)

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Question 153

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Credit cards and debit cards eliminate the paper handling processes of using checks.

The World Bank primarily finances projects to protect the environment.

Traditionally,life insurance companies,pension funds,and brokerage firms are known as ________.

Large pension funds represent a powerful force in U.S.financial markets.

Most countries restrict the flow of money in and out of their borders.

Alfredo banks at a commercial bank that advertises its membership in the FDIC.This means that:

Barter involves the use of electronic payment systems,like Paypal.com,for online transactions.

Some automatic teller machines (ATMs)allow users to pick up concert tickets and download MP3 music files.

__________ includes anything that people generally accept as payment for goods and services.

All federally chartered banks are members of the Federal Reserve.

Chipper's Golf resort is in the process of purchasing rare Kauri wood from New Zealand to be made into an impressive mantle on the fireplace of its new clubhouse.Before disbursing payment to the New Zealand dealer,the director of the construction project is concerned about the timeliness of delivery as well as the quality of the slab of wood once it is delivered.As the representative of Chipper's bank,you suggest that the Golf resort sign a(n) :

Which of the following represent an independent agency of the U.S.government that insures bank deposits?

Technically,a bank can require depositors to give prior notice before they withdraw funds from time deposits.

The Federal Reserve System consists of ________ Federal Reserve banks.

The Fed requires that banks hold a percentage of their deposits in a vault.This percentage is the _________.

The global money markets trade more than $1.9 trillion every day.

Barter is the trading of goods and services for other goods and services.

The ________ provides the same results as a check because it withdraws funds from a checking account.