Monetary Policy & the Federal Reserve

Influencing the economy by changing the reserve requirement is called:

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

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, 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, 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

If the United States is experiencing inflation, the Fed will likely

• Increase the supply of money in the economy
• Decrease the supply of money in the economy

A rise in the cost of goods and services is called...

• inflation

• discount rate

• interest

• deflation

Money loses its value when it

• It becomes too plentiful
• becomes too portabale
• is divisible
• is durable

Which of the following is contractionary policy?

• buying bonds
• increasing the discount rate

• decreasing discount rate
• decreasing required reserves