Money Banking and the Federal Reserve

You have been selected as Chairman of the Federal Reserve System by the president and confirmed by Congress when the US economy is during an expansionary phase of the business cycle. As chairman of the FED, ________ is your greatest concern.

• inflation

• cyclical unemployment & its impact on the retail and industrial sectors

• deflation

• where to eat lunch

How is the Chairman of the FRS selected for the job?

• the former Chairman chooses the new Chairman

• the President nominates the candidate & the Senate confirms the candidate selected

• interested candidates apply for it online

• the head of the regional banks with the most seniority gets the job

As Chairman of the FRS, you are presented with the situation in this graph. You recognize the situation as one of

• deflation

• Expansion

• Contraction

• recession

The _____ is the central bank of the United States.

• Financial institutions

• Federal Reserve System

• District Banks

Coins and paper bills make up the _____ of the United States.

• barter

• currency

• debt

_____ carry out Fed policy and oversee banking within its district.

• Financial Institutions

• Federal Reserve System

• District banks

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

• Monetary policy

• Fiscal year

_____ accept deposits from depositors and lend money to businesses and consumers.

• Financial institutions

• Federal Reserve System

• District banks

_____ pay interest on deposits and allow people to make withdrawals.

• Savings accounts

• Certificate of deposit

• Money market account

• Checking account

Federal Reserve Board of Governors members are appointed by the ____________ and confirmed by the ____________.

• state governors, Supreme Court

• House of Representatives, Senate

• Senate, President

• President, Senate