4.3 - The Federal Reserve and Monetary Policy

Front

"The Fed" refers to the....

Back

Federal Reserve System

Front

The primary role of the Federal Reserve Bank is to keep the economy healthy by

Back

controlling the money supply.

Front

The tools and strategies used by the Fed to stabilize the economy are called...

Back

Monetary policy

Front

The Federal Reserve...

Back

Regulates the amount of money, Supervises Banks, Provides Financial Services.

Front

The Fed ______________ banks to ensure the soundness of the banking system.

Back

regulates

Front

Which of the following is NOT one of the goals of Monetary Policy (= "the mandate of the Fed")? maximum employment, stable prices, moderate long-term interest rates, keep real GDP to the same level as previous years

Back

keep real GDP to the same level as previous years

Front

The Federal Reserve is run by

Back

the Board of Governors

Front

The current chair of the Federal Reserve is

Back

Jerome Powell

Front

If the economy is expanding too quickly and inflation seems likely, the Federal Reserve will institute which type of monetary policy?

Back

Contractionary Monetary Policy (Tight Money Supply)

Front

If the economy is slowing down, the Federal Reserve will institute which type of monetary policy?

Back

Expansionary Monetary Policy (Easy Money Supply)