Question

The ______________ is the central bank of the United States, responsible for regulating the country's financial and monetary system.

Question 1 options:

Federal Trade Commission


Federal Reserve System


Social Security Administration


Federal Bureau of Investigation

Question 2 (2.5 points)
A period when there isn't enough money or credit in the economy, and the economy is shrinking instead of growing, is often called a ____________

Question 2 options:

depression


recession


inflation


None of the above

Question 3 (2.5 points)
An ____________ is a severe and prolonged downturn in economic activity, characterized by a significant decline in the GDP, high unemployment rates and a sharp reduction in production.

Question 3 options:

recession


depression


inflation


none of the above

Question 4 (2.5 points)
When there is too much money or credit in the economy, the economy usually enters a period of _____________.

Question 4 options:

recession


depression


inflation


none of the above

Question 5 (2.5 points)
Which is an example of a monetary policy?

Question 5 options:

The government lowers taxes and increases spending.

The government restricts the amount of money that banks can lend.

The government pays for repairing damage from a natural disaster.

The government requires credit card companies to protect customers' privacy.
Question 6 (2.5 points)
If the Federal Reserve System lowers the reserve requirement, what will happen?

Question 6 options:

Banks will be able to give out more loans.


The money supply will grow more slowly.


People will have less spending power.


Banks will make changes to the fees they charge customers.

Answer 1

Here are the answers to your questions:

**Question 1:**
The ______________ is the central bank of the United States, responsible for regulating the country's financial and monetary system.
**Answer:** Federal Reserve System

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**Question 2:**
A period when there isn't enough money or credit in the economy, and the economy is shrinking instead of growing, is often called a ____________
**Answer:** recession

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**Question 3:**
An ____________ is a severe and prolonged downturn in economic activity, characterized by a significant decline in the GDP, high unemployment rates and a sharp reduction in production.
**Answer:** depression

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**Question 4:**
When there is too much money or credit in the economy, the economy usually enters a period of _____________.
**Answer:** inflation

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**Question 5:**
Which is an example of a monetary policy?
**Answer:** The government restricts the amount of money that banks can lend.

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**Question 6:**
If the Federal Reserve System lowers the reserve requirement, what will happen?
**Answer:** Banks will be able to give out more loans.

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Feel free to ask if you have any more questions!