Monetary Policy

Front

Selling bonds

Back

decreases money supply

Front

Buying bonds

Back

increases money supply

Front

High reserve requirements

Back

lower the money supply

Front

Low reserve requirements

Back

increase the money supply

Front

"The Fed" refers to the....

Back

Federal Reserve System

Front

What is an action of monetary policy? Options: reduce taxes, changing reserve requirements, increase spending, borrow money for deficit

Back

changing reserve requirements

Front

What happens to the money circulation when the FED orders a tight money policy?

Back

less money is put into circulation

Front

The central bank in the USA that regulates the monetary system

Back

The FED

Front

If the Federal Reserve wanted to stimulate the economy (make it grow), they might: Sell Treasury bonds, Buy Treasury bonds, Spend more money, Spend less money

Back

Buy Treasury bonds

Front

Which of the following scenarios would cause the nation’s money supply to increase? Decreasing government spending, Lowering interest rates, Raising interest rates, Selling bonds to investors

Back

Lowering interest rates