Chapter 14 The Federal Reserve and Monetary Policy

The Central bank of the US is called

• the Federal Reserve
• Government Reserve
• National Reserve
• State Reserve

The board of seven appointed members who surpervise the operations of the Fed and set policy is called the

• Board of Bankers
• Board of Governors
• Board of Regulators
• Board of Trustees

Which action increases the money supply?

• the Fed BUYS bonds on the market
• the Fed raises the discount rate
• the federal gov. decreases government spending
• the federal gov. increases personal income taxes

The interest rate the Fed charges other banks

• discount rate
• monetarism
• prime rate
• open market operations

Contractionary monetary policy is sometimes called

• decreasing money policy
• saving money policy
• slow money policy
• tight money policy

A plan to increase the amount of money in circulation

• open market operations
• expansionary policy
• contractionary  policy
• monetarism

Expansionary monetary policy is sometimes called

• circulation money policy
• easy money policy
• lending money policy
• money flow policy

What is the purpose of the Federal Reserve System?

• to store the gold and silver reserves that back the US currency
• to provide federal insurance to safeguard the deposits in the banks
• to make loans to banks issue currency and regulate the money supply
• to deregulate banks and savings and loans instituitons

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 what year was the Federal Reserve created?

• 1910
• 1913
• 1915
• 1917