The Federal Reserve

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

Influencing the economy by changing the reserve requirement or the Discount Rate is called:

• Fiscal policy

• Monetary policy

• Tight Money

• Easy Money

The Federal Reserve System was established in

• 1799
• 1913
• 1863
• 1881

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

Which part of the Fed decides when to raise or lower interest rates?

• Board of Governors
• Advisory Committee
• Chairman
• Federal Open Market Committee

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

The current chairperson of the Federal Reserve is:

• Jerome Powell

• Alan Greenspan

• Ben Bernanke

• Janet Yellen