1. the interest rate federal reserve banks charge financial institutions for short term loans reserves is called.

a. exemption rate

b. discount rate

c. salvage rate

d. premium rate

2. what can the fed do, as a lender, to banks meet short-term needs?

a. gift capital to act as a buffer

b. nothing

c. ask banks to maintain steady reserve demand and supply without any

d. offer discount rate loans

3. what is the most important tool the fed has to conduct monetary policy?

a. is providing discount rates

b. is raising taxes on households

c. is the buying and selling of us government securities

d. is raising taxes on households

4. the buying and selling of us government securities by the fed is also known as the:

a. stock market

b. free market trade

c. open market operations

d. uspto

5. if the fed raises the reserve

a. banks have no money to lend, and the money supply increases

b. banks have less money to lend, restraining the growth of the money supply

c. banks have more money to lend, and the money supply increases

d. banks have no money to lend, restraining the growth of the money supply

6. if the fed lowers the reserve

a. banks have less money to lend, restraining the growth of the money

b. banks have more money to lend, and the money supply increases

c. banks have no money to lend, and the money supply increases

d. banks have no money to lend, restraining the growth of the money supply

7. the percentage of funds a bank must set aside and hold in reserve is called

a. fafsa vault

b. reserve commissary

c. the reserve requirement

d. rainy day funds

8. what is the federal reserve system

a. it is a massive warehouse that holds everything a nation would need in case a world war would happen

b. works as a government business enterprise.

c. acts as a country's central bank.

d. it is comparable to the nation's supreme court, which is the highest judicial court in a country or state