Monetary Policy

The branch bank of the Fed for South Carolina is located in which city? Just write the city's name.

(a)  

Which of the following as a role of the Fed? Check all the correct answers.

• Regulate Hedge Funds

• Act as a lender of last resort

• Manage the US monetary policy

• Determine the income tax rate

• Act as the central banks for states

When the Fed sells bonds to financial institutions it is likely to ____________ the supply of money

• Increase

• Decrease

If unemployment is 4% and inflation is 3.5% the Fed is likely to:

• Sell government bonds and target a higher Federal Funds Rate

• Sell government bonds and target a lower Federal Funds Rate

• Buy government bonds and target a higher Federal Funds Rate

• Buy government bonds and target a lower Federal Funds Rate

When discussing monetary policy, RRR stand for Required (a)   Ratio.

Banks and credit unions generate money in the economy by:

• Selling governments bonds

• Making loans

• Printing money

• All of these are correct