Federal Reserve

"The Fed" refers to the....

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

What does Inflation do to the value of money?

• Makes it go up.
• Makes it go down.
• Makes it stay the same.

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.

What is the central bank of the United States called?

• National Savings and Loan

• National Credit Union

• Federal Reserve

• Federal Bank

A goal of the Federal Reserve System is to-

• Provide tax money to the government

• Set the tax rate

• Keep the economy stable

• Maintain high interest rates

The government issues coins and currency to make the exchange of goods and services easy. People accept U.S. coins and currency in exchange for goods and services because they have:

• No other choice

• Confidence in the U.S. government

• Been taught that this is the law and the only way to do it

• No way to regulate "barter and trade"

If the reserve requirement is raised, the amount of money in circulation will

• 
• 

If the Fed sells government securities, the amount money in circulation will

• 
• 

If the Fed buys government securities, the amount money in circulation will

• 
• 

_____ is the changing of the money supply to create economic growth.

• Monetary policy

• Fiscal year