When Commercial Banks Need More Federal Reserve Notes

question 121

Multiple Choice

When commercial banks need more Federal Reserve Notes,

• A) they call the Bureau of Engraving and Printing,which delivers the requested amount.
• B) they call the Board of Governors of the Fed,which delivers the requested amount.
• C) they ask their customers to exchange their Federal Reserve Notes for U.S.Treasury securities.
• D) they call the Treasury,which delivers the requested amount.
• E) they call their Federal Reserve District Bank,which delivers the requested amount.

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Definitions:

Employed

Refers to individuals who are currently working for pay or profit, including full-time and part-time positions, as well as temporary and seasonal work.

Cyclical Unemployment

Unemployment that results from economic recessions or downturns, reflecting the cyclical nature of an economy, where demand for labor decreases during slow economic periods.

Labor Force

The total number of people, including both employed and unemployed individuals, who are actively seeking work.

Unemployment Rate

The ratio of the workforce that is in a state of joblessness while searching for work opportunities.