Monetary and Fiscal Policy (CFA #6)

Macroeconomics is the study of?

• People
• Decisions of individuals
• The economy as a whole

The general increase of price levels?

• inflation
• deflation
• consumer price index
• aggregate demand

What is one tool that measures the rate of inflation?

• GDP
• Federal Reserve
• unemployment
• consumer price index

Which type of unemployment is due to changes in the business cycle?

• frictional
• seasonal
• structural
• cyclical

_____ is a rate that a bank pays customers for keeping their money

• collateral 
• interest
• currency
• deposit

amount of deposits that banks are required to keep on hand

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

If the United States is experiencing inflation, the Fed will likely

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

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

• is made up of 12 district banks and 25 branch banks.
• is managed by a 12-member board of directors.
• is made up of district banks that operate independently from one another.

How many Board of Governor members are there?
 

• 3
• 5
• 7
• 12