CE 11 Part 2 Question Preview (ID: 3644)


Taxes, The Fed, And Consumer Rights. TEACHERS: click here for quick copy question ID numbers.

An increase in government spending often _____ the overall economy temporarily by increasing employment and production
a) boosts
b) slows
c) doesn't affect
d)

An increase in government spending will most likely result in a(n) ____ in taxes sooner or later.
a) increase
b) decrease
c) none of these
d)

The Federal Reserve (Fed) is the ____ bank of the U.S.
a) central
b) private
c) public
d)

What is the discount rate?
a) interest rate that the Fed charges banks when they need to borrow money
b) interest rate charged by the government on late taxes
c)
d)

What does the reserve requirement require banks to do?
a) Banks have to keep a percentage of customers' deposits on reserve with the Fed instead of loaning it
b) The government has to reserve a percentage of citizens' taxes for health care.
c) nothing
d)

If the Fed increases the reserve requirement, what would be the impact on the nation's money supply?
a) It would decrease.
b) It would remain the same.
c) It would increase.
d) It would blow up.

If the Fed purchases government securities (bonds) in large quantities, what would be the impact on the nation's money supply?
a) It would increase.
b) It would decrease.
c) It would remain the same.
d) The government would go out of business.

If the Fed wants to slow down the economy, what would it most likely do?
a) Increase the money supply.
b) Decrease the money supply.
c) Hire new lawyers.
d)

Government agencies such as the Food and Drug Administration are designed mainly to
a) protect the rights of consumers
b) protect the rights of businesses
c) protect the rights of the government.
d) none of these

If a consumer is injured by a product sold by a business, does the law allow the consumer to sue the business in court?
a) Yes, duh.
b) No, duh.
c) IDK
d)

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