Question

Tina has $1,500 that she will use to buy a car in four months. In the meantime, she would like to invest it to earn more money. Which of these would yield the greatest return in her time frame?

a. Money market account

b. Roth IRA

c. Savings account

d. Savings bonds Which of these is a natural monopoly?

a. Cell phone service

b. Computer repair

c. Package delivery service

d. Sewage treatment If the economy is in decline, and the Federal Reserve wants to encourage banks to lend to consumers, which step will the Fed likely take?

a. Encourage the sale of government securities.

b. Decrease the discount rate.

c. Increase the federal funds rate.

d. Raise the prime rate. Which of the following is a government price control?

a. Farm subsidies

b. Minimum wage

c. Research funding

d. Union actions

Following U.S. involvement in the Korean War and the related period of low unemployment and rising prices, the Federal Reserve intervened to curb growth and decrease inflation. At what point in the business cycle did the Federal Reserve take action?

a. Contraction

b. Expansion

c. Peak

d. Trough

Answer 1

Tina has $1,500 that she will use to buy a car in four months. In the meantime, she would like to invest it to earn more money. Which of these would yield the greatest return in her time frame? a. Money market account

Which of these is a natural monopoly?
d. Sewage treatment

If the economy is in decline, and the Federal Reserve wants to encourage banks to lend to consumers, which step will the Fed likely take?
c. Increase the federal funds rate.

Which of the following is a government price control?
b. Minimum wage

Following U.S. involvement in the Korean War and the related period of low unemployment and rising prices, the Federal Reserve intervened to curb growth and decrease inflation. At what point in the business cycle did the Federal Reserve take action?
b. Expansion