Federal Reserve

What is the name of the "central bank" of the United States?

• Bank of the U.S.
• The Federal Reserve
• U.S. Congressional Bank
• The Federal Bank of America

Monetary policy is BEST described as

• benefits received by employees in addition to wages & salaries.
• actions by the Federal Reserve System to expand or contract the money supply.
• a system that relies on supply and demand to determine the value of one currency to another.
• actions by the federal government to use spending and revenue collection to influence the economy.

Another way the Federal Reserve can increase the money supply in the United States is to....

• lower the discount rate.

• increase the discount rate

The Federal Reserve System controls the size of the 

• tax supply.
• money supply.
• demand supply.
• production supply.

The general increase of price levels?

• inflation
• deflation
• consumer price index
• aggregate demand

What is one tool that measures the rate of inflation?

• GDP
• Federal Reserve
• unemployment
• consumer price index

What should the Fed do to correct a recession and increase the money supply?

• Buy bonds- treasury securities

• Sell bonds- treasury securities

Check ALL ways the Federal Reserve can correct INFLATION and slow the economy

• Increase the Discount Rate

• Increase the Reserve Ratio

• Sell Bonds

• Stop acting like I know this.