ECON/PF: The Federal Reserve

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

Influencing the economy by changing the reserve requirement is called:

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

What does Inflation do to the value of money?

• Increases its value

• Decreases its value

• Nothing

Does increasing the money supply cause inflation or deflation?

• Inflation
• Deflation

The primary role of the Federal Reserve Bank is to steer the economy by

• controlling the budget
• setting spending levels.
• controlling the money supply.
• loaning out money.

In a recession (high unemployment), the Fed would likely

• Increase the supply of money in the economy

• Decrease the supply of the money in the economy

The Federal Reserve can increase __________, which makes banks more selective when loaning out money

• Reserve Requirements
• Percentage/Earnings Ratios
• Dividends
• Blue Chip Stocks

If the economy is expanding too quickly (think inflation), the Federal Reserve will institute which type of monetary policy?

• Expansionary

• Contractionary

• Equanimitous

• Whole Dollar

The current chairperson of the Federal Reserve is:

• Jerome Powell

• Alan Greenspan

• Ben Bernanke

• Janet Yellen

The central bank of the United States is the:

• Federal Reserve Banking System.
• Comptroller's Bank.
• United States National Bank.
• U.S. Treasury Bank.