Monetary Policy Concepts

Monetary Policy Concepts

Assessment

Flashcard

Social Studies

12th Grade

Practice Problem

Easy

Created by

Matt Ford

Used 3+ times

FREE Resource

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15 questions

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1.

FLASHCARD QUESTION

Front

Monetary Policy

Back

The process by which the central bank controls the supply of money and interest rates to achieve specific economic goals, such as stable prices and maximum employment.

2.

FLASHCARD QUESTION

Front

Federal Reserve (the Fed)

Back

The central banking system of the United States responsible for implementing monetary policy and regulating financial institutions.

3.

FLASHCARD QUESTION

Front

Interest Rates

Back

The cost of borrowing money or the return on investment. The Federal Reserve influences interest rates to stimulate or cool down economic activity.

4.

FLASHCARD QUESTION

Front

Inflation

Back

The rate at which the general level of prices for goods and services rises, eroding purchasing power. The Fed aims to keep inflation in check.

5.

FLASHCARD QUESTION

Front

Deflation

Back

The opposite of inflation; a decrease in the general price level of goods and services. Persistent deflation can have negative effects on the economy.

6.

FLASHCARD QUESTION

Front

Open Market Operations

Back

The buying and selling of government securities by the Federal Reserve in the open market to control the money supply and influence interest rates.

7.

FLASHCARD QUESTION

Front

Quantitative Easing (QE)

Back

An unconventional monetary policy in which a central bank purchases financial assets to increase the money supply and encourage lending.

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