PREVFinLit1 - IG (80p Protected Preview)

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EXPLORING 21st CENTURY SKILLS AND ISSUES

13. The interest rate the Fed charges on money it loans to banks is called the a. U.S. Rate b. discount rate c. bank rate d. governors’ rate 14. To reduce the amount of money in the money supply, what might the Feds do to the discount rate? a. eliminate it b. raise it c. lower it d. nothing 15. Open market operations refers to the Fed’s actions of: a. raising or lowering the discount rate b. ordering of the printing and minting of money; c. buying and selling government bonds to/from the public d. all of the above 16. Action taken by a central or reserve bank to increase the supply of money to stimulate a sluggish economy is called _________________ easing. a. currency PRODUCT PREVIEW b. qualitative c. quantitative d. economic

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Lesson 4 | The Money Morph

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