Monetary Policy Review

Front

Who controls the money supply in the United States?

Back

Federal Reserve

Front

The interest rate charged for banks to borrow from the Fed is called

Back

The discount rate

Front

The Fed can tell banks how much of people's deposits they have to hold onto by changing the

Back

Reserve requirement

Front

To expand the economy, you want to _______ the money supply

Back

Increase

Front

To slow down or shrink the economy, you want to _______ the money supply

Back

Decrease

Front

If there is excessive inflation, you want to _______ the money supply

Back

Decrease

Front

If there is low demand, you want to _______ the money supply

Back

Increase

Front

The Fed can influence the money supply by buying and selling government securities, AKA

Back

bonds