WorksheetsThe Federal Reserve
Total questions: 10
Worksheet time: 17mins
What led to the creation of the Federal Reserve System?
The stock market crash in 1929
The establishment of the Department of Treasury
A series of bank panics and failures in the early 1900s
The great recession of 2008
If the Fed wanted to contract or tighten the economy to help fight inflation, they might
Increase reserves to limit what banks can loan out
Lower the interest rate
Decrease reserves allowing banks to loan more
Decrease government spending
What are the two tools the FOMC will use to determine monetary policy?
Taxing and spending
Interest rates and reserve requirements
legislation and enforcement
interest rate and tax rates
If the Fed wanted to expand or ease monetary policy, which might they do?
Increase reserves, limiting what banks can loan
Increase the interest rate
Decrease the interest rate
Lower taxes
