To Stabilize the Banking System and Control the Supply of Money

question 60

Multiple Choice

To stabilize the banking system and control the supply of money, the Federal Reserve requires all banks to maintain a reserve

• A) in currency in the amount of half of all bank loans.
• B) in cash supply in each bank location.
• C) in currency or in deposits with a Federal Reserve bank.
• D) by buying bonds from the government.

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Definitions:

Automatic Extension

A provision that allows taxpayers additional time to file their tax returns without penalty.

Extension to File

An allowance by the IRS granting taxpayers additional time to file their income tax returns, beyond the April 15 deadline, without penalty for late filing.

Extension of Time

An allowance by the IRS giving taxpayers extra time to file their tax returns beyond the original due date.

Married Filing Separately

A tax filing status that allows a married individual to file their taxes separately from their spouse.