Unit 3B Monetary Policy & FED

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

The central bank in the USA that regulates the monetary system

• The FED
• FDIC
• The IRS
• Social Security

Monetary Policy is the Federal Reserve Systems attempt to...

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

Which policy would help fight inflation?

• Expansionary

• Contractionary

Which policy would help fight unemployment?

• Expansionary

• Contractionary

number of federal reserve district banks?

• 5

• 10

• 12

• 21

If major newspapers feature the headline "Consumer Spending Rising Faster than Production!" the FOMC most likely will focus on

• contractionary monetary policy

• expansionary monetary policy

A certificate of indebtedness issued by a government

• Stock

• Bond

• Type of money

Federal Reserve System

• depository institution that invests the majority of its funds in home mortgages 
• depositor-owned financial organization operated only for the benefit of its depositors 
• system that functions as the central bank of the United States
• financial institutions that accepted the deposits of small investors

Which part of the Fed decides when to raise or lower interest rates?

• Board of Governors
• Advisory Committee
• Chairman
• Federal Open Market Committee