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Questions and Answers
In 2007, as the credit crisis began, the Federal Reserve started increasing interest rates.
In 2007, as the credit crisis began, the Federal Reserve started increasing interest rates.
False
Tax-exempt securities are preferred when taxes decrease.
Tax-exempt securities are preferred when taxes decrease.
False
Tax policies do not provide any benefits or incentives.
Tax policies do not provide any benefits or incentives.
False
The National Bank Act was passed in 1863 to regulate depository institutions.
The National Bank Act was passed in 1863 to regulate depository institutions.
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The public was resistant to the idea of a central national bank before the financial panics of 1907.
The public was resistant to the idea of a central national bank before the financial panics of 1907.
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The Federal Reserve Acts of 1913 and 1916 established the modern banking system.
The Federal Reserve Acts of 1913 and 1916 established the modern banking system.
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Each district in the Federal Reserve System has at least one branch bank.
Each district in the Federal Reserve System has at least one branch bank.
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The Federal Reserve uses three tools to implement its monetary policy, which include fiscal policy and open market operations.
The Federal Reserve uses three tools to implement its monetary policy, which include fiscal policy and open market operations.
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An increase in reserve requirements leads to a decrease in funds available for investment.
An increase in reserve requirements leads to a decrease in funds available for investment.
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The federal funds rate is the interest rate charged by banks for overnight, unsecured loans.
The federal funds rate is the interest rate charged by banks for overnight, unsecured loans.
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