money, the fed and monetary policy

The primary decision making body of the Federal Reseve is the .....

• Board of Governors

• Congress

• Federal Open Market Comittee (FOMC)

The money multiplier is the inverse of the .....

• Discount rate

• required reserve rate (ratio)

• federal funds rate

If the economy is suffering from a recessionary gap, the Fed should conduct_______________ monetary policy by _________________the money supply.

• expansionary; decrease

• expansionary; increase

• contractionary; decrease

The three main monetary policy tools are:

• interest rates, taxes, government purchases, and transfers.

• currency, near-moneys, and reserve ratio.

• reserve requirements, the discount rate, and open-market purchases.

Expansionary monetary policy in the United States causes U.S. interest rates________________ to and the dollar to ________________.

• decrease; depreciate

• decrease; appreciate

• increase; appreciate

An example of a double coincidence of wants is:

• a car dealer who wants a TV and an electronics store owner who wants money

• a car mechanic who wants a TV and an owner of an electronics store who wants a car repaired.

• an electronics store owner who wants car repairs and a car mechanic who wants money.

What makes Fiat money have value?

• gold

• silver

• faith

M1 is also called .......

• transactional funds

• federal funds

• Certificate of deposits

There are how many district banks in the Federal Reserve System?

• 7

• 14

• 12

Who was the first woman to be chairperson of the Federal Reserve and Secretary of the Treasury?

• Kamala Harris

• Nancy Pelosi

• Janet Yellen