Ch.16 The Federal Reserve

privately owned, publicly controlled, central bank of the United States

• central bank

• Federal Reserve System (Fed)

• national bank

• Wachovia

The tools and strategies used to stabilize the economy

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

Increasing the reserve requirement has which of the following results:

• More is lent out and more is paid in interest
• More is lent out and less is paid back in interest
• Less is lent out and more is paid in interest
• Less is lent out and less is lent in interest.

In a recession, the Fed would likely

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

number of federal reserve districts

• 5
• 10
• 12
• 21

Raising the discount rate will reduce

• unemployment
• inflation

Lowering the reserve requirement will reduce

• unemployment
• inflation

The Federal Reserve

• Regulates the amount of money.
• Supervises Banks.
• Provides Financial Services.
• All of the above.

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

The Federal Reserve System was established in

• 1799
• 1913
• 1863
• 1881