3.4 Flashcard Quiz 111-122

What type of fiscal policy is used to slow the economy?

• Contractionary

• Expansionary

• Business Cycle

• GDP

The Federal Reserve System is split into 12 __________ banks

• Sector

• Area

• District

• Commercial

Taxing and spending by the government to influence the economy.

• Monetary policy

• Fiscal policy

• Domestic policy

• Foreign Policy

The government part of the Fed and the Federal Open Market Committee (FOMC): made up of 7 members

• District banks

• The Federal Reserve

• Fiscal Policy

• Board of Governors

Actions taken by the government to grow the economy is known as what?

• Contractionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Monetary Policy

• Expansionary Fiscal Policy

Tools used by the Fed to stabilize the economy

• Monetary Policy

• Domestic Policy

• Fiscal Policy

• Fed Policy

The discount rate, reserve requirements, and buying/selling government bonds are known as

• Fiscal Policy Tools

• Foreign Policy Tools

• Monetary Policy Tools

• Discount Rate

The percentage of a bank's deposits that the banks have to keep in their vaults and can't loan out

• Discount Rate

• Reserve Requirement

• Buying/ selling government bonds

• Supreme Bank

Actions taken by the Fed to grown the economy (lower discount rate, lower reserve requirements, buy government bonds).

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Monetary Policy

Interest rate the FED charges commercial banks for loans.

• Discount Rate

• Reserve Requirement

• Buying/selling government bonds

• Board of Governors