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Banking and Financial Institutions Answers

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An interest rate for a loan compares how much interest is paid to

A
a percentage of the loan.
B
how much money was borrowed.
C
how much money was deposited.
D
the length of the loan.
2
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To maximize employment, the Fed tries to make sure that .

A
the economy grows
B
prices increase
C
interest rates decrease
3

The Fed has the most direct influence over .

A
unemployment
B
interest rates
C
foreign money
4

The Federal Reserve is a system of .

A
government departments
B
international banks
C
special banks

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