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The amount of currency in the money supply:
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
Expansion occurs when:
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
During a period of contraction:
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
How many district banks are associated with the FED?
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
Banks keeping a percentage of customer deposits... is called:
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
What occurs when there is more money in the supply and interest rates fall?
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
What occurs when there is less money in the supply and interest rates increase?
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
The FED has a direct impact on:
affects interest rates
interest rates
there is less taxation and/or more spending by the government
contraction
12
the GDP decreases, the unemployment rate increases, and there is little inflation
expansion
the reserve ratio
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