Monetary Policy Quiz (Ch 16 and some 14, 15)

the actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy

• monetary policy

• fiscal policy

• open market operations

• monetarism

the twelve banking districts created by the Federal Reserve Act

• Federal Reserve Districts

• Federal Advisory Council (FAC)

• required reserve ratio (RRR)

• tight money policy

the research arm of the Federal Reserve

• Federal Reserve Council (FAC)

• Federal Open Market Committee (FOMC)

• money multiplier formula

• easy money policy

Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money supply

• Federal Open Market Committee (FOMC)

• Federal Advisory Council (FAC)

• Federal Reserve Districts

• open market operations

ratio of reserves to deposits required of banks by the Federal Reserve

• required reserve ratio (RRR)

• monetary policy

• fiscal policy

• monetarism

amount of new money that will be created with each demand deposit, calculated as 1/RRR

• money multiplier formula

• required reserve ration (RRR)

• easy money policy

• tight money policy

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

• open market operations

• monetary policy

• monetarism

• Federal Advisory Council (FAC)

the belief that the money supply is the most important factor in macroeconomic performance

• monetarism

• monetary policy

• fiscal policy

• easy money policy

monetary policy that increases the money supply

• easy money policy

• tight money policy

• Federal Open Market Committee (FOMC)

• Federal Reserve Districts

monetary policy that reduces the money supply

• tight money policy

• easy money policy

• monetary policy

• required reserve ratio (RRR)