Federal Reserve & More

Which of the following is a responsibility of the Federal Reserve?

Type of unemployment. Carey loses her job at the steel factory cuz consumer spending is weak.

How affected by inflation? I am putting money away in a 529 college savings account for my kid.

What economic indicator is used to measure the production or output of our economy?

Type of unemployment. Gerald loses his job to robots at the auto manufacturing plant.

Calculated in GDP? Farmer's purchase of a new tractor.

How affected by inflation? Bank has loaned millions for mortgages at a fixed rate of interest.

How affected by inflation? You rent an apartment with a 3-year lease that locks in your payment

The economy is in a recession, unemployment up. What open market operation should the Fed do?

What happens to trade when the U.S. dollar becomes stronger relative to other currencies?

Report used by the Fed consists of interviews with key business contacts, economists, more.

Which component of GDP? Whirlpool makes washer in Michigan and sells it to a Chinese consumer.

Which component of GDP? I pay my accountant $175 to file my tax paperwork.

What is the real rate of return? I make 8% on Amazon stock in 2017 and inflation was 1%.

What is a Bitcoin?

Which component of GDP? A calculator purchased by a college student for taking exams.

Calculated in GDP? An electrician's purchase of a two-year-old used truck for work.

Calculated in GDP? The government's purchase of a new submarine for the Navy.

Which is the largest component of GDP?

What is the term used to account for inflation when calculating GDP?

Type of unemployment. Raquel was laid off at the Toyota plant because of the weak economy.

What is the real rate of return? I make 4% on a U.S. Savings bond and inflation was 3%.

Term when government has declared legal tender, but it's not backed by a physical commodity.

Type of unemployment. Sam recently quit her job in landscaping to look for a job at Home Depot.

Calculated in GDP? Flour used by Meijer to bake Italian bread to sell in their bakery?

Count as unemployed? Tina decides to not get a job after school so she can improve her grades.

Calculated in GDP? Income received from the sale of Nike stock.

Reserve requirement 20%, deposit $1,000. How much of a loan can be made by the first bank?

Type of unemployment. Dan loses his production line job when the factory moves to China.

Count as unemployed? Michael runs his own computer repair business.

Which of the following people/groups is not on the Federal Open Market Committee (FOMC)?

Calculated in GDP? A Social Security check from the government to a retired store manager.

Type of unemployment. Because fewer people smoke, Eric can't find work in the tobacco fields.

Type of unemployment. Mitch quits his job as a salesman to look for a salaried job elsewhere.

Long term inflation goal of the Federal Reserve.

Type of unemployment. Charlie is a lifeguard, loses his job when it gets too cold for swimming.

Which of the following is NOT true about the Consumer Price Index?

Calculated in GDP? The services of a stay at home mom taking care of her own children.

Economy is growing and inflation is a concern. What open market operation should the Fed do?

Reserve requirement 10%, deposit $5,000. How much of a loan can be made by the first bank?

Which is NOT one of the top 3 categories of items in the basket of goods used to calculate CPI?

Which of the following is NOT a component used to calculate Gross Domestic Product?

Which component of GDP? The construction of roads by the government.

Count as unemployed? Cheryl stays at home caring for her small preschool children.

Which component of GDP? The construction of a new house.

Count as unemployed? Francis works only 20 hrs/week as a waitress despite having a degree.

Impact on the money supply of lowering the Reserve Requirement from 10% to 5%?