Government’s Role in Business - Banking & Monetary Policy

Select the correct words from the two options in the underlined sections. Monetary policy allows central banks to achieve price _____________ and help maintain economic _________________. Blank 1 Choose stability or fluctuation

Select the correct words from the two options in the underlined sections. Monetary policy allows central banks to achieve price _____________ and help maintain economic _________________. Blank 2 Choose stability or fluctuation

Which type of monetary policy involves increasing the growth of the money supply?

• Expansionary monetary policy

• Contractionary monetary policy

• Reserve monetary policy

• Federal monetary policy

Which of the following allows eligible institutions to borrow money from the central bank to meet reserve requirements?

• Discount rate

• Reserve policy

• Discount window

• Inflation targeting

How does the Federal Reserve slow inflation and economic growth?

• Buying securities

• Stimulating economic growth

• Lowering interest rates

• Raising interest rates

Reserve _________________ is a regulation requiring commercial banks to keep a certain ___________________ of the money customers deposit on reserve each night. This money must be in the bank’s _______________ or at the closest Federal Reserve bank. Blank 1 percentage, requirements, vault

Reserve _________________ is a regulation requiring commercial banks to keep a certain ___________________ of the money customers deposit on reserve each night. This money must be in the bank’s _______________ or at the closest Federal Reserve bank. Blank 2 percentage, requirements, vault

Reserve _________________ is a regulation requiring commercial banks to keep a certain ___________________ of the money customers deposit on reserve each night. This money must be in the bank’s _______________ or at the closest Federal Reserve bank. Blank 3 percentage, requirements, vault