| A | B |
|---|
| What do taxes collected by the Federal Insurance Contribution Act (FICA) help to fund? | Social Security and Medicare |
| What do Social Security taxes pay for? | benefits to older citizens, surviving family members of wage earners, and people with disabilities |
| What is an entitlement? | social welfare program providing benefits to people who meet certain eligibilitiy requirements |
| When revenues are larger than expenditures... | there is a budget SURPLUS |
| When you buy a United States Savings Bond, you.. | loan money to the government |
| Why does the Federal Reserve alter monetary policy? | to lessen effects of business cycles |
| What was a reason the government started the Federal Reserve? | provide consumers with funds for business expansion |
| How could the Federal Reserve encourage banks to lend out more of their reserves? | reduce the discount rate |
| How many Federal Reserve Districts are there? | 12 |
| Why does a bank hold reserves? | to be sure they can meet customers' demands |
