Fed Holds Interest Rates Near Zero Despite Economic Growth, Inflation

Fed Holds Interest Rates Near Zero Despite Economic Growth, Inflation

Assessment

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Business, Social Studies

University

Hard

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The Federal Reserve's response to the crisis focuses on promoting maximum employment and stable prices, while ensuring financial system stability. Interest rates are kept low to encourage spending, with future increases contingent on achieving employment and inflation targets.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two main goals of the Federal Reserve's mandate during the crisis?

Decrease employment and increase prices

Increase interest rates and reduce inflation

Promote maximum employment and stable prices

Promote financial instability

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current range of interest rates set by the Federal Reserve?

0.5% to 1%

0% to 0.25%

1% to 1.5%

0.25% to 0.5%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why has the Federal Reserve kept interest rates low during the pandemic?

To decrease employment

To encourage spending and keep loan rates down

To increase inflation

To promote financial instability

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Under what conditions will the Federal Reserve consider increasing interest rates?

When inflation reaches 3%

When the stock market crashes

After achieving maximum employment and a 2% rise in inflation

When unemployment rises

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who is the Federal Reserve Chairman mentioned in the transcript?

Alan Greenspan

Jerome Powell

Ben Bernanke

Janet Yellen