Economics Week 5 Flashcard

Front

"The Fed" refers to the....

Back

Federal Reserve System

Front

What does Inflation do to the value of money? Options: Makes it go up., Makes it go down., Makes it stay the same.

Back

Makes it go down.

Front

The primary role of the Federal Reserve Bank is to steer the economy by

Back

controlling the money supply.

Front

In a recession, the Fed would likely

Back

Increase the supply of money in the economy

Front

If the economy is expanding too quickly, what type of monetary policy will the Federal Reserve institute? Options: Expansionary, Contractionary, Equanimitous, Whole Dollar

Back

Contractionary

Front

If the United States is experiencing inflation, the Fed will likely

Back

Decrease the supply of money in the economy

Front

The Fed keeps a certain amount of money out of circulation. This is referred to as the...

Back

Reserve requirement

Front

The tools and strategies used by the Fed to stabilize the economy are called...

Back

Monetary policy

Front

A rise in the cost of goods and services is called...

Back

inflation

Front

Money loses its value when it becomes too plentiful.

Back

becomes too plentiful