Answer the following statements true (T) or false (F)
1) The Fed increases interest rates mainly by selling government securities.
2) Ben Bernanke is the current (2013) chair of the Board of Governors.
3) A change in the reserve ratio will affect both the amount of the banking system's excess
reserves and the multiple by which the system can lend on the basis of excess reserves.
4) The federal funds rate target is the most frequently used monetary policy tool.
1) T
2) T
3) T
4) F
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One way to approach saving is to have a goal of building a(n) ______________ of three to six month's income
a. Emergency fund b. Umbrella reserve c. Quantity fund d. Production/consumption reserve
The value of a basket of goods and services in 2010 and 2012 were $800 and $900, respectively. If 2012was the base year, the price index for this base year was _____
a. 88.9 b. 100 c. 120 d. 112.5