Economic Quizizz

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

Influencing the economy by changing the reserve requirement is called:

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

What does Inflation do to the value of money?

• Makes it go up.

• Makes it go down.

• Makes it stay the same.

Does increasing the money supply cause inflation or deflation?

• Inflation

• Deflation

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

• controlling the budget
• setting spending levels.
• controlling the money supply.
• loaning out money.

In a recession, the Fed would likely

• Increase the supply of money in the economy
• Decrease the supply of the money in the economy

The Federal Reserve can increase __________, which makes banks more selective when loaning out money

• Reserve Requirements
• Percentage/Earnings Ratios
• Dividends
• Blue Chip Stocks

If the economy is expanding too quickly, the Federal Reserve will institute which type of monetary policy?

• Expansionary
• Contractionary
• Equanimitous
• Whole Dollar

If the Fed wanted to expand or ease monetary policy, which might they do?

• Increase reserves, limiting what banks can loan
• Increase the interest rate
• Decrease the interest rate
• Lower taxes