1. The Fed bought several billion dollars worth of U.S. government securities. The purpose of this action is to:

A. decrease the size of the national debt.

B. drive up interest rates to cool off inflationary pressures.

C. improve its financial position by investing in relatively safe interest-earning assets.

D. stimulate the economy by increasing the amount of money in circulation.

2. The World Bank provides funding for:

A. multinational corporations that have a strong credit rating.?

B. the developed nations in Europe and Asia.?

C. firms that want to participate in international trade but lack foreign exchange.?

D. projects to improve the standard of living in less-developed nations.?

3. Under the Federal Reserve Act of 1913:

A. membership in the Federal Reserve System was required of all banks that had deposits of more than $1 million.

B. federally chartered banks were required to join the Federal Reserve System.

C. membership in the Federal Reserve System was made voluntary for all banks.

D. all banks were required to hold reserves equal to at least 50 percent of their deposits.