- What is the main reason the Fed requires
commercial banks to keep reserves?
A. To provide banks with extra money for their
vaults
B. To give the Federal Reserve more control
over the money-creation operations of banks
C. To ensure that banks do not make excessive
profits off loans
D. To help the U.S. Treasury reduce the federal
government’s debt
E. To allow the government to borrow money at
lower interest rates - When a foreign country increases its demand for
U.S. goods, what impact does that have on the
value of the dollar?
A. Eventually the dollar will fall in value.
B. Eventually the dollar will rise in value.
C. The dollar will not change in value.
D. The gold standard in the U.S. will increase.
E. Foreign countries will have more U.S.
dollars.
Macroeconomics Full-Length Practice Test 1Macroeconomics Full-Length
Practice Test 1