Monetary Policy 25

As we work through the quizizz, think about:

• How is monetary policy impacting the nation?

• How is monetary policy impacting the community?

• How is monetary policy impacting you?

Warmup: Current Event (fiscal policy)

Is this event impacting the nation, the state, the county, or you? Why do you say that?

​Each Districts works with the banks and governors in their region.

​Why do you think the banks are divided into region?

Jerome Powell

Current leader of the Federal Reserve

Why do you think this man is very important and very powerful?

Open Ended

Imagine your parents agreed to buy you a vehicle. What vehicle would you want? How much does it cost? How would they pay for this vehicle?

If banks have to keep more money to cover their costs, this means less money to lend to you.

​Reserve requirements

Charging banks higher costs to borrow from them, means higher costs for you.

​Discount rate

The ability to buy the car can be impacted by the federal reserve.

Multiple Choice

Who is in charge of Monetary Policy

• The Government

• The Federal Reserve System

• The states

• The Department of the Treasury

Multiple Choice

Monetary Policy is the Federal Reserve Systems attempt to...

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

Multiple Select

Which TWO economic goals is the Federal Reserve mandated to try to achieve?

• Economic Freedom

• Economic Efficiency

• Price Stability

• Economic Growth

• Full Employment

Multiple Choice

If the federal reserve were to try to fix this unemployment problem, which type of policy would they use?

• Fiscal Policy

• Monetary Policy

• Foreign Policy

Multiple Choice

Which of the following is NOT a monetary policy tool of the federal reserve?

• Discount Rate

• Reserve Requirement

• Open Market Operations

• Taxation

Multiple Choice

What action would the Federal Reserve take to control inflation?

• Buy government securities
• Decrease the required reserve ratio
• Increase taxes
• Increase the discount rate

Multiple Choice

Which type of monetary policy would be MOST likely to reduce the unemployment rate?

• No change to the money supply

• Decrease the money supply

• Increase the money supply

Multiple Choice

If the Federal Reserve were to try to decrease inflation, which monetary policy goal would be best?

• Increase the money supply

• Decrease the money supply

• Keep the money supply the same

Multiple Choice

Which monetary policy tool would best decrease the money supply to reduce inflation?

• Increase the discount rate

• Decrease the discount rate

• Decrease the reserve requirement

Multiple Choice

If the Fed wants to increase the cost of loans, then it should adjust...

• Open Market Operations

• The Reserve Ratio

• The Discount Rate

Multiple Choice

If the Fed wants to reduce the amount of loans a bank can make, then it should adjust...

• Open Market Operations

• The Reserve Requirement

• The Discount Rate

Multiple Choice

Selling bonds

• increases money supply
• decreases money supply

Multiple Choice

Buying bonds

• increases money supply
• decreases money supply