10. The legal tender requirement means that are more likely to the dollar as a m
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10. The legal tender requirement means that are more likely to the dollar as a medium of must hold not make trades with else Il of the above are correct 11. The agency responsible for regulating the money supply in the United States is ler of the Curren the U.S Federal Reserve U.S. Bank 12- followin The Federal Reserve does all except which of the of ntrol the value of loans to individuals the banki 13. The 12 l Federal Reserve Banks not make loans to banks in their districts banks in their districts. to the FOMC and have a 14. When the Federal Reserve conducts open market transactions, it Federal Reserve notes s or sells bonds from the the discount ratc to member banks 15. Under a fractional reserve banking system, banks ld more reserves than lend out a of the funds ause the l of the above are correct 16. To increase the money supply, the Fed could bonds increase the discount rate rease the reserve of the above is correct.Explanation / Answer
10. A legal tender is financial instrument legal service to pay public and private debt.
11. The federal reserve.
12. C
Explaination : It provides financial services to depository institutions, USA government, foreign officials institutions.
13. C
14. B open market operation is buying and selling of securities by central government.
15. C
Keeps less amount as deposits which reduces the capacity to lend more money
16.B
Fed can Lowers or increase the discount rate that bank pay on short term loans from federal reserve bank.
17. A
Uses open market operation as a tool to decrease the money supply in the market
18. Discount rate.
Discount rate is the interest rate charged to commercial bank and other depository institutions.
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