The Federal Reserve

The number of district banks in the Federal Reserve System

• 11
• 12
• 13
• 14

Official nickname for the Federal Reserve Bank

• Daddy Bank
• Momma Bank
• The Fed
• Feds

The interest rate the Fed charges commercial banks for loans

• Fed Fund Rate
• Reserve Requirement Rate
• Discount Rate
• I.O.U Rate

Percentage of deposits that the Fed requires banks to hold back and not lend out

• Fed Fund Rate
• Reserve Requirement Rate
• Discount Rate
• I.O.U Rate

Buying and selling US government securities (bonds) to raise and lower interest rates

• Fed Fund Rate
• Reserve Requirement Rate
• Discount Rate
• Open Market Operation

If we are experiencing a severe recession, the fed should _____ the reserve requirement.

• increase
• decrease

If we are experiencing massive inflation, the fed should _____ the reserve requirement.

• increase
• decrease

If we are experiencing massive inflation, the fed should _____ the fed fund rate.

• increase
• decrease

If we are experiencing massive recession, the fed should _____ the fed fund rate.

• increase
• decrease

If the Federal Reserve buys bonds, it _________ the supply of money in circulation.

• increases
• decreases