Banking

Question 1

A responsibility the Federal Reserve has is to

Revolt · Accepted Answer

loan money to banks during a crisis.

Question 2

What types of investments do banks use to make a profit? Check all that apply.opening checking accountsstarting new businessesbuying stocks and bondsbuying several propertiesissuing loans to all customersbuying the rights to loans

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buying stocks and bonds; buying several properties; buying the rights to loans

Question 3

Which banker would a software company most likely visit for help to raise large amounts of capital to acquire, or buy out another company?

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an investment banker

Question 4

The Federal Reserve transfers profits from its twelve regional banks to

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the Department of the Treasury.

Question 5

Which is the correct order of entities that benefit when banks make a profit?

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shareholders, companies, and the economy

Question 6

The Federal Reserve Bank of the United States is also known as the

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central bank.

Question 7

The Federal Reserve manages the nation’s currency and money supply by

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manipulating interest rates and acting as a lender to banks.

Question 8

Which example best describes how a bank injects money into the economy?

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A bank approves a loan for a customer.

Question 9

Which statement best describes the effects of low and high interest rates on the economy?

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Low interest rates encourage consumers to borrow and spend, while high interest rates encourage saving.

Banking Answers

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