The Federal Reserve

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What is the Federal Reserve?

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The central bank of the United States

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Monetary policy primarily deals with...

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the amount of money in circulation.

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What is something the Federal Reserve System does NOT do? Loan money to banks, Set the reserve rate, Set the discount rate, Design currency

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Design currency

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"The Fed" refers to the....

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Federal Reserve System

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Influencing the economy by changing the reserve requirement is called:

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Monetary policy

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What does Inflation do to the value of money?

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Makes it go down.

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

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controlling the money supply.

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The Federal Reserve...

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Regulates the amount of money, Supervises Banks, Provides Financial Services.

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Which tool does the Federal Reserve use to influence the economy? Options: Setting the national budget, Control over interest rates, Regulating the internet, Controlling immigration

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Control over interest rates

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What happens when the Fed lowers interest rates?

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It encourages business expansion and consumer spending