What is the primary goal of including this paragraph in FDIC press releases?

To reassure the public that the FDIC is a private company?

The federal funds rate is the interest rate

A. the Federal Reserve charges for loans it makes to the federal government.

B. the Federal Reserve charges banks for short-term loans.

C. banks charge each other for short-term loans of reserves.

D. on newly issued one-year Treasury bonds.

The federal funds rate is the interest rate that

a) banks charge one another for loans

b) the Fed charges Congress for loans.

c) banks charge the Fed for loans

d) the Fed charges banks for loans

Use the Internet or other resource to find the configuration of letters and numbers on license plates in your state. Then find the number of possible plates.

When a bank loans out $1,000, the money supply

a. does not change.
b. decreases.
c. increases.
d. may do any of the above.

Use the internet or a newspaper to find the number of state-chartered banks in your state for each year of the last 10 years. Use the data you collect to create a graph showing whether the number of state-chartered banks in your state increased or decreased in the last 10 years.

A hyperinflation is ________.

A) a period of extreme inflation generally greater than 50 percent per month

B) a period of anxiety caused by rising prices

C) an increase in output caused by higher prices

D) impossible today because of tighter regulations

Finish the following sentence.

When deciding how much to save, people care most about ___________.

A) after-tax nominal interest rates

B) after-tax real interest rates

C) before-tax real interest rates

D) before-tax nominal interest rates

The benefit of diversification when constructing a portfolio is that it can eliminate a. speculative bubbles. b. risk aversion. c. firm-specific risk. d. market risk.

What do economists mean when they say "price floors and ceilings stifle the rationing function of prices and distort resource allocation"?

When prices are falling, economists say that there is

A) disinflation.

B) deflation.

C) a contraction.

D) inverted inflation.

True or False: Lenders are helped by unanticipated inflation

In what circumstances would lenders most benefit?

A) When there is an unanticipated decrease in inflation.

B) When there is an anticipated increase in inflation.

C) When there is an unanticipated increase in inflation.

D) When there is an anticipated decrease in inflation.

A lender need not be penalized by inflation if the:

A) long-term rate of inflation is less than the short-term rate of inflation

B) short-term rate of inflation

C) lender correctly anticipates inflation and increases the nominal interest rate accordingly

D) inflation is unanticipated by both borrower and lender