7. (TCO 7) The basic requirement of money is that it be backed by precious metals--gold or silver authorized as legal tender by the central government generally accepted as a medium of exchange some form of debt or credit 8. (TCO 7) The Federal Reserve System of the U.S. is the country's financial adviser comptroller or accountant central bank deposit insurance provider 9. (TCO 7) Which of the following is the most important function of the Federal Reserve System? Setting reserve requirements Controlling the money supply Lending money to banks and thrifts Acting as fiscal agent for the U.S. government 10. (TCO 7) Money is "created" when a depositor gets cash from the bank's ATM a bank accepts deposits from its customers people receive loans from their banks people spend the incomes that they receive 11. (TCO 7) During the financial crisis of 2007-2008, the FDIC increased deposit insurance coverage from $50,000 to $100,000 per account $100,000 to $250,000 per account $200,000 to $500,000 per account $500,000 to $1,000,000 per account 12. (TCO 7) The purchase and sale of government securities by the Fed is called federal funds market open market operations money market transactions term auction facility 13. (TCO 7) The Federal Reserve could reduce the money supply by selling government bonds in the open market buying government bonds in the open market operating the term auction facility reducing the discount rate 14. (TCO 8) Which country is the United States' largest trading partner in terms of volume of trade? Mexico,Japan,China,Canada 15. (TCO 8) The principal concept behind comparative advantage is that a nation should maximize its volume of trade with other nations use tariffs and quotas to protect the production of vital products for the nation concentrate production on those products for which it has the lowest domestic opportunity cost strive to be self-sufficient in the production of essential goods and services 16. (TCO 8) A tariff is a Tax Price ceiling Quantity limit Subsidy 17. (TCO 8) Tariffs and quotas are costly to consumers because the price of the imported good falls the supply of the imported good increases import competition increases for domestic goods consumers shift purchases to higher-priced domestic goods 18. (TCO 8) Tariffs and import quotas would benefit the following groups, except consumers of the product domestic producers of the product workers in domestic firms producing the product the government of the importing country 19. (TCO 8) Which organization meets regularly to establish rules and settle disputes related to international trade? The United Nations Commission on Trade Law The United Nations Conference on Trade and Development The World Trade Organization The Federal Reserve Board 20. (TCO 9) U.S. businesses are demanders of foreign currencies because they need them to produce goods and services exported to foreign countries pay for goods and services imported from foreign countries receive interest payments from foreign governments receive interest payments from foreign businesses.
7. (TCO 7) The basic requirement of money is that it be
backed by precious metals--gold or silver
authorized as legal tender by the central government
generally accepted as a medium of exchange
some form of debt or credit
8. (TCO 7) The Federal Reserve System of the U.S. is the country's
financial adviser
comptroller or accountant
central bank
deposit insurance provider
9. (TCO 7) Which of the following is the most important function of the Federal Reserve System? Setting reserve requirements
Controlling the money supply
Lending money to banks and thrifts
Acting as fiscal agent for the U.S. government
10. (TCO 7) Money is "created" when
a depositor gets cash from the bank's ATM
a bank accepts deposits from its customers
people receive loans from their banks
people spend the incomes that they receive
11. (TCO 7) During the financial crisis of 2007-2008, the FDIC increased deposit insurance coverage from
$50,000 to $100,000 per account
$100,000 to $250,000 per account
$200,000 to $500,000 per account
$500,000 to $1,000,000 per account
12. (TCO 7) The purchase and sale of government securities by the Fed is called
federal funds market
open market operations
term auction facility
13. (TCO 7) The Federal Reserve could reduce the money supply by
selling government bonds in the open market
buying government bonds in the open market
operating the term auction facility
reducing the discount rate
14. (TCO 8) Which country is the United States' largest trading partner in terms of volume of trade? Mexico,Japan,China,Canada
15. (TCO 8) The principal concept behind
maximize its volume of trade with other nations
use tariffs and quotas to protect the production of vital products for the nation
concentrate production on those products for which it has the lowest domestic
strive to be self-sufficient in the production of essential goods and services
16. (TCO 8) A tariff is a
Tax
Quantity limit
Subsidy
17. (TCO 8) Tariffs and quotas are costly to consumers because
the price of the imported good falls
the supply of the imported good increases
import competition increases for domestic goods
consumers shift purchases to higher-priced domestic goods
18. (TCO 8) Tariffs and import quotas would benefit the following groups, except
consumers of the product
domestic producers of the product
workers in domestic firms producing the product
the government of the importing country
19. (TCO 8) Which organization meets regularly to establish rules and settle disputes related to international trade?
The United Nations Commission on Trade Law
The United Nations Conference on Trade and Development
The World Trade Organization
The Federal Reserve Board
20. (TCO 9) U.S. businesses are demanders of foreign currencies because they need them to produce goods and services exported to foreign countries pay for goods and services imported from foreign countries receive interest payments from foreign governments receive interest payments from foreign businesses.
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