Money, Banking, and the Federal Reserve

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve

• Federal Income Tax

The Federal Reserve

• is made up of 12 district banks.

• is managed by a 10-member board of directors.

• is made up of district banks that operate independently from one another.

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

Influencing the economy by changing the reserve requirement or the Discount Rate 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 American Dollar bill is an example of

• Commodity Currency
• Representative Currency
• Fiat Currency
• Public Currency

The 2008 Financial Crisis was caused by:

• Banks giving out subprime loans

• Men and women playing hard and fast with the rules

• The Illuminati

Character:

• Will you pay back the loan?

• Can you pay the loan back?

• What can the bank take if you don't take back the loan?

Capacity:

• Can you pay back the loan?

• Will you pay back the loan?

• What can the bank take if you don't pay back the loan?