11.05 Unit Test National And Global Finance

Question: The Federal Reserve System is able to do which of the following things?

Answer: Provide loans to banks

Question: Which of the following things does the U.S. Constitution allow the U.S. government to do?

Answer: Punish people who make illegal copies of money

Question: What is domestic commerce?

Answer: The buying and selling of products within a particular country

Question: What is fiscal policy?

Answer: The way a government collects money and spends it on goods and services

Question: What is likely to happen to the economy when there’s too much money or credit circulating?

Answer: Prices will go uo

Question: What is the discount rate?

Answer: The interest rate that the Federal Reserve System charges member banks to borrow money from the Federal Reserve System

Question: If the Federal Reserve System lowers the reserve requirement, what will happen?

Answer: Banks will be able to give out more loans.

Question: Which of the following agencies would be most likely to oversee cleanup after an oil spill?

Answer: Environmental Protection Agency

Question: What is free trade?

Answer: Trade that governments do not interfere with

Question: What is a tariff?

Answer: A tax placed on imports or exports