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leva [86]
3 years ago
10

1. Which of the following institutions makes up the largest part of the Federal Reserve System organization? A. Board of Governo

rs B. Federal Free Market Committee C. Federal Reserve Banks D. Member banks and other depository institutions 2. If the United States falls into a recession, which action would the Federal Reserve take to encourage employment? A. Buy government securities B. Increase reserve requirements C. Raise federal funds and prime rates D. Sell government securities
Social Studies
2 answers:
lina2011 [118]3 years ago
7 0

Correct answer choice for question 1 is :


<h2>C) Federal Reserve Banks </h2><h2 /><h2>Explanation:</h2><h2 />

While the Board of Governors is a sovereign government agency, the Federal Reserve Banks are set up like private companies. Member banks hold stock in the Federal Reserve Banks and earn profits. The Federal Reserve's interest is determined principally from the interest on U.S. government securities that it has received through open market operations.

____________________________________________________________


Correct answer choice for question 2 is :


<h2>A) Buy government securities </h2><h2 /><h2>Explanation:</h2><h2 />

A recession is a business cycle recession which occurs in a general slowdown in financial activity. Macroeconomic indicators such as GDP, finance spending, capacity utilization, household income, business profits, and inflation fall, while failures and the unemployment rate rise.

____________________________________________________________


swat323 years ago
5 0

Answer:D

Explanation:Member banks and other depository institutions.

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