The Federal Reserve and Banking

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

In a recession, the Fed would likely

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

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

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

• Expansionary
• Contractionary
• Equanimitous
• Whole Dollar

The central bank of the United States is the:

• Federal Reserve Banking System.
• Comptroller's Bank.
• United States National Bank.
• U.S. Treasury Bank.

A rise in the cost of goods and services is called...

• inflation

• discount rate

• interest

• deflation

The Fed ______________ banks to ensure the soundness of the banking system.

• regulates
• closes
• opens
• runs

The Federal Reserve...

• Regulates the amount of money.

• Supervises Banks.

• Provides Financial Services.

• All of the above.

The Fed's primary goal is

• create the Open Market Committee

• elect the President who can best run the country

• raising GDP

• low unemployment

• price stability