Monetary Policy Practice

Front

Who is in charge of Monetary Policy?

Back

The Federal Reserve System

Front

Monetary Policy is the Federal Reserve Systems attempt to...

Back

control the amount of money in circulation

Front

Which of these is NOT a monetary policy tool? Discount rate, Open Market Operation, Reserved Requirements

Back

Balance Accounts

Front

If the Fed wants to reduce the amount of loans a bank can make, then it should adjust...

Back

The Reserve Ratio

Front

If the Fed wants to increase the cost of loans, then it should adjust...

Back

The Discount Rate

Front

An easy money (expansionary) policy means that the Fed is attempting to

Back

increase the size of the nation's money supply

Front

A tight money (contractionary) policy means that the Fed is attempting to

Back

decrease the size of the nation's money supply

Front

Which policy would help fight inflation? Options: easy money, tight money

Back

tight money

Front

Which policy would help fight unemployment?

Back

easy money

Front

During a recession, the Fed should use...

Back

easy money policy