Crash Coarse Economic- Fiscal Policy

Who is considered arguably the most influential person on earth according to the text?

• Janet Yellen

• Adriene Hill

• John Mayer Keynes

• Paul Volker

What is the primary role of the Federal Reserve?

• To print currency

• To regulate and oversee the nation's commercial banks

• To set the federal budget

• To provide educational resources

What does monetary policy aim to do?

• Regulate stock markets

• Increase or decrease the money supply to influence the economy

• Monitor international trade

• Change the country's laws

What happens when interest rates are low?

• The economy slows down

• Banks borrow more from the Federal Reserve

• Borrowers find it easier to pay back loans and spend more

• Inflation decreases significantly

What is the effect of a decrease in the money supply?

• More money for banks to loan out

• Higher interest rates

• Lower interest rates

• Increased spending

What was the Fed's response to the economic slump after the Dot Com bust and 9-11?

• It increased taxes

• It increased the reserve requirement for banks

• It decreased the money supply

• It boosted the money supply, lowering interest rates

What is GDP?

• Gross Domestic People

• Domestic Gross People

• A method to increase bank reserves

• Gross Domestic Product

Why have banks held onto more money since 2008?

• Due to stricter lending regulations and economic uncertainty

• Because of high interest rates

• To prepare for government audits

• As a response to increased consumer savings

What is the main reason the actual inflation rate stayed low despite the increase in money supply since 2008?

• The introduction of digital currencies

• Banks haven't loaned out the money

• Increased exports

• Because of a decrease in consumer spending

What is the Federal Open Market Committee responsible for?

• Regulating the stock market

• Deciding how many bonds to buy and sell

• Determining the reserve requirement

• Setting the federal budget