Macro

How many Federal Reserve District banks are there?

• 12

• 9
• 6
• 5

__________ is the total value amount of goods and service produced within a country's border in a one year time period?

• economic output
• Gross domestic product
• aggregate supply
• aggregate demand

_____ 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

interest rate that the Federal Reserve charges commercial banks for loans

• discount rate
• monetary policy
• inside lag
• tight money policy

buying and selling of government securities in order to alter the supply of money

• open market operations
• tight money policy
• outside lag
• inside lag

Which of the following would cause the Federal Reserve to implement expansionary monetary policy?

• The economy is expanding too quickly and inflation is a concern.
• The federal government passes a new budget with a large deficit.
• The economy is prosperous with low inflation.
• A recession has reduced aggregate demand and increased unemployment.

If the economy is in a recession, the Federal Reserve could do all of the following EXCEPT

• Lower taxes
• Lower the discount rate
• Buy securities
• Lower the required reserve ratio

The federal government's overall approach to spending and taxes is called

• Physical Policy
• Fiscal Policy
• Money
• Monetary Policy