Monetary Policy

Who is in charge of Monetary Policy

• The Government

• The Federal Reserve System

• The states

• The Department of the Treasury

Monetary Policy is the Federal Reserve Systems attempt to...

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

Which of these is NOT a monetary policy tool?

• Discount rate

• Balance Accounts

• Open Market Operation

• Reserved Requirements

If the Fed wants to reduce the amount of loans a bank can make, then it should adjust...

• Open Market Operations

• The Reserve Ratio

• The Discount Rate

Which of the following are related to adjusting the supply of money and credit? (SELECT 2.)

• monetary policy

• fiscal policy

• adjusting amounts banks may loan out to customers

• decreasing income taxes consumers have to pay

• preparing US budget

The headline below indicates which type of policy:

"Fed unleashes another big rate hike in bid to curb inflation"

• Fiscal policy

• Monetary policy

Which of the following scenarios would cause the nation’s money supply to increase?

• Decreasing government spending

• Lowering interest rates

• Raising interest rates

• Selling bonds to investors

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve System

• Federal Income Tax

Expansionary Policy

• when the government seeks to boost the economy by increasing the money supply

• amount of money the government spends per year

• when the government seeks to slow the economy by limiting the money supply

• difference between spending and revenue each year

If the Federal reserve and Government are attempting to encourage growth and stimulate the economy, which actions would each take? 
(monetary / fiscal)

• increase the Required reserve / increase government spending

• sell government securities / decrease taxes

• decrease the interest rate / increase government spending

• buy government securities / decrease government spending