What is another function of the FED?

Supervising and regulating banks

What is monetary policy?

Creating a healthy economy by controlling the money supply

What was an EFFECT of the 2008 financial crisis?

The gov't organized a $700 billion bailout

How does the FED know if the economy is healthy?

They look at economic indicators

Is the FED a branch of the US government?

No! It works closely with the gov't, but it is independent!

The difference between macro and micro economics is

Micro looks at small segmentsl while macro examines the whole economy!

The Fed Board of Governors are appointed by

The President of the United States

What are the three basics questions all economies seek to answer?

What is made? How is made? Who gets it?

Why should you care/know about the FED?

They control your ability to get money & loans!

In a free market, "consumer sovereignty" means

consumers ultimately decide what gets produced

What is another function of the FED?

Acting as a 'lender of last resort' giving bailouts

If economic indicators show an unhealthy economy, what can the FED do?

Increase or decrease interest rates

The phrase "guns or butter" expresees the idea that

government decsions involve trade offs between military and domestic needs

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Econ Review Norton 2021

35 termsStudBud Administration503 plays

Review of monetary policy, the fed, the role of money.

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Questions 35

Answers

1
Which of the following was a CAUSE of the 2008 financial crisis?
Decline in inflation
Subprime loans
Decline in GDP
Guaranteed loans
2
What is another function of the FED?
Establishing rules for consumer protection
Selecting new members of Congress
Advising the President
Supervising and regulating banks
3
What function of money is shown in the image?
store of value
Medium of exchange
unit of account
4
What is monetary policy?
Creating rules for US citizens to follow when voting
Providing bailouts to banks and businesses when they mess up
Creating a healthy economy by controlling the money supply
Establishing rules to follow during presidential elections
5
Which is a tool the Fed uses to manpulate the money supply
contracting printer services
reserve ratios
stimulus checks
immigration
6
According to the law of demand, as a price of a good or service increases,
consumers purchase other goods
consumers save more
consumers buy less
consumers buy more
7
Which of the following is an important function of the FED?
Monitoring foreign businesses
Establishing rules for presidential elections
Establishing monetary policy
Exercising quality control over TV
8
A member of the Board of Governors of the Federal Reserve serves for
two years
14 years
10 years
life
9
What was an EFFECT of the 2008 financial crisis?
The gov't allowed the banks to go bankrupt
The gov't organized a $700 billion bailout
The gov't supported taking out more subprime loans
The gov't took borrowed money from international banks
10
How does the FED know if the economy is healthy?
They ask it how it's feeling
They listen to the President
They look at economic indicators
They poll the America public about their thoughts
11
Which economist would say, "Let the market solve economic problems, the government needs to stay out
Freidman
Galbraith
FDR
Keynes
12
Which of the following is NOT a function of a bank?
Collect taxes
Give financial advice
Provide loans
Keep valuables safe
13
Which is NOT a type of unemployment
functional
Cyclical
frictional
structural
14
Define the Federal Reserve.
A special division at the FBI
Nickname for the 'Federales' an anti-immigration group
The central bank of the US
Branch of the US Government that handles money
15
Is the FED a branch of the US government?
No! It works closely with the gov't, but it is independent!
I have no idea...
Yes! The President controls the FED!
Like a tree branch?
16
An opportunity cost is one of the best alternatives one can make other than the decision they DO make
True
False
17
The difference between macro and micro economics is
Macro looks at small segments, while micro examines the whole economy
Macro is food stuffs(macaroni for short), micro from("microscope)
Micro looks at small segmentsl while macro examines the whole economy!
18
The Fed Board of Governors are appointed by
Secretary of the Treasury
Fed Chair
State Governors
The President of the United States
19
Which function of money is depicted in the image?
Store of value
Unit of Account
Medium of Exchange
20
Which is charateristic of a centrally planned economy
consumer sovereignty
hyperinflation
government control
stagflation
21
Congress chartered the Second Bank of the United States to eliminate the financial chaos of the early 19th century
True
False
22
What are the three basics questions all economies seek to answer?
Where is it? When is it? When do I get it?
When do I get it? When do you get it? When do they get it?
What is made? How is made? Who gets it?
Where is it? How much does it cost to make? How much does it cost to buy?
23
What are the three factors of production
human capital, physical capital, mental capital
land, labor and capital
workers, management, entrepreneurs
Yneeds, wants and choices
24
Who is this Chairperson?
Bill Clinton
Cassius Mackerel
Matthew Thatcher
Jerome Powell
25
How does the FED raising the interest rate impact society?
It makes getting a loan harder
Unemployment rates will drop significantly
Inflation increases
There is an increase in GDP
26
How does the Chairperson get their job?
Appointed by the President
Application & Interview
Elected by US popular vote
Rock, Paper, Scissors Tournament
27
Why should you care/know about the FED?
They control your ability to get money & loans!
They decide who the next President will be.
They pick who sings the National Anthem at the Superbowl
They create new rules and regulations regarding driving
28
In a free market, "consumer sovereignty" means
Consumers struggle with producers for control of the marketplace
Government intervenes to mitigate between consumers and producers
consumers ultimately decide what gets produced
consumers are left with few choices
29
Because of scarcity, every decision involves a
trade off
cost/benefit analysis
Marignal cost
marginal benefit
30
What is another function of the FED?
Analyzing the latest political polls projecting a winner
Acting as a 'lender of last resort' giving bailouts
Monitoring viral videos on the Internet
Establishing rules for swimming pool safety
31
If economic indicators show an unhealthy economy, what can the FED do?
Advise the President to print more money
Make some chicken noodle soup
Increase or decrease interest rates
Move to another country that is doing better
32
Where is the FED Board of Governors located?
San Francisco
Washington, D.C.
The Moon
Chicago
33
What is NOT a function of money
a unit of account
medium of exchange
a store of value
A means to barter
34
The phrase "guns or butter" expresees the idea that
individuals, business and governments face trade-offs
government decsions involve trade offs between military and domestic needs
factor resources are limited
government decsions involve opportunity costs
35
How long is an average $1 in circulation?
6 inches
8 inches
4 inches
10 inches

Econ Review Norton 2021 Flashcards | StudBud