Week 1 – Day 5 Quiz

What function does the Federal Reserve primarily serve in the U.S. economy?

Which of the following can be influenced by interest rate decisions?

Which organization is known as the central bank of the United States?

Arrange the following actions in the sequence of positive effects it might have when a central bank raises interest rates:

Match the term with its description:

The Federal Reserve is responsible for implementing monetary policy and ensuring the stability of the ________ system.

What is the U.S. Federal Reserve primarily responsible for?

Rising interest rates can have which of the following effects?

What is the central banking system of the United States called?

Place the following in order of how they might be affected by decreased interest rates:

Match the central banks to their respective countries:

When the central bank raises its interest rates, it can lead to a(n) ________ of the nation’s currency.

When the central bank wants to encourage borrowing and investment, it might:

Which entities are most directly affected by interest rate decisions?

What term describes the rate at which one currency can be exchanged for another?

Rank the following in order of sensitivity to interest rate changes (from most to least sensitive):

Match the following financial instruments to their descriptions:

The Federal Reserve’s Open Market Committee meets regularly to set the target for the federal ________ rate.

When trying to slow down an overheated economy, what might the central bank do?

Higher interest rates can potentially lead to: