drill and practice lesson 10 - (1)The twelve Regional Fed...

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(1)The twelve Regional Fed banks are “bankers' banks” and they hold deposits of member banks and make loans to member banks to meet ___________ requirements. C reserve (2)If _________________ choices are made by the newly added “hybrid organization” in our Circular Flow diagram, then a great deal of good can be done for the economy. C strong (3)People hold the same cash balances for _______________ regardless of the interest rate. D none of the above (3)When a $1000 bond is initially sold at 5 percent “coupon” yield for 30 years, $50 (.05 x $1,000) interest per year is paid to the buyer of the bond. However, if interest rates increase to 6 percent for similar bonds issued later on, then the market price of the initial bond will _________________ . A decrease (5)In addition to the size of the GDP, some other factors that affect the value of the American dollar are its relative _____________ compared to other currencies and the relative stability of the governments that issue those currencies. C scarcity The FED’s Board of Governors consists of seven members appointed for staggered _________ year terms by the President of the U.S. The purpose of this arrangement is to make the Board less political by having various board members serve under a succession of Presidents. D fourteen
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This note was uploaded on 02/04/2011 for the course ECON 1110 taught by Professor Amy during the Fall '09 term at University of North Texas Health Science Center.

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drill and practice lesson 10 - (1)The twelve Regional Fed...

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