Money & the Federal Reserve

The Federal Reserve System is called the _________ for short.

• FED

• GDP

• IRS

The Federal Reserve

• is made up of 12 district banks.

• is managed by a 10-member board of directors.

• is made up of district banks that operate independently from one another.

What does the Federal Reserve help regulate?

Check all that apply.

• Inflation

• The supply of Chocolate

• Unemployment

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

The ________ the interest rate, the cheaper the loan.

The ______ the interest rate, the more expensive the loan.

Which monetary policy increases the money supply and makes it easier for banks to loan out money?

• Expansionary

• Contractionary

Which monetary policy decreases the money supply, causing consumer spending and investment to decrease?

• Expansionary

• Contractionary

True or False: The Federal Reserve is the central bank of the United States.

• True

• False

What is the definition of monetary policy?

• the ability to influence the availability of money in the economy.

• a government adjusts its tax rates to monitor and influence a nation's economy.

• meeting the needs of the present without compromising the ability of future generations to meet their needs.