11.05 Quiz: National and Global Finance

The Federal Reserve System is able to do which of the following things? Provide loans to banks
Which of the following things does the U.S. Constitution allow the U.S. government to do? Punish people who make illegal copies of money
What is domestic commerce? The buying and selling of products within a particular country
What is fiscal policy? The way a government collects money and spends it on goods and services
What is likely to happen to the economy when there’s too much money or credit circulating? Prices will go uo
What is the discount rate? The interest rate that the Federal Reserve System charges member banks to borrow money from the Federal Reserve System
If the Federal Reserve System lowers the reserve requirement, what will happen? Banks will be able to give out more loans.
Which of the following agencies would be most likely to oversee cleanup after an oil spill? Environmental Protection Agency
What is free trade? Trade that governments do not interfere with
What is a tariff? A tax placed on imports or exports
What is a trade balance? A comparison between a country’s imports and exports
Which of the following factors makes a currency more attractive to investors? A low inflation rate
An exchange rate tells you _________________. The value of a currency when it’s converted to another currency
Which of the following is a disadvantage of globalization? Increased competition
What is monetary policy? The way a government controls the supply, availability, and value of money

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