Unit 7: Federal Reserve System

The Federal Reserve uses ______ to regulate the economy.

• Monetary Policy
• Fiscal Policy

The Federal Reserve act was signed in 

• 1865
• 1913
• 1917
• 1930

There are _______ Regional Federal Reserve Banks, and one Federal Reserve Board of Governors.

• 50
• 4
• 12
• 52

The Federal reserve buys government securities to _______ the amount of money in the economy.

• Reduce
• Increase

The Federal reserve sells government securities to _______ the amount of money in the economy.

• Reduce
• Increase

To much money in our economy leads to 

• Inflation
• Recession

The Federal Reserve is called "The Bankers Bank" because it supervises banks.

• False
• True

The Federal Reserve

• Regulates the amount of money.
• Supervises Banks.
• Provides Financial Services.
• All of the above.

amount of deposits that banks are required to keep on hand

• monetary policy
• money creation
• reserve requirements
• prime rate

actions that the Federal Reserve System takes to influence the real GDP and the rate of inflation

• open market operations 
• federal funds rate
• inside lag
• monetary policy