What's all the Yellen About? Monetary Policy and the Federal

What is the name of the central bank of the United States?

• Bank of America

• US Treasury

• Federal Reserve

• Department of Finance

How does monetary policy work?

• It speeds up or slows down the economy be affecting foreign politics.

• It speeds up or slows down the economy by affecting the money supply.

• It speeds up or slows down the economy by affecting the labor supply.

• It regulates how much trade can enter the United States.

The Fed can tell banks how much interest to charge their customers.

• False

• True

What are the two things that keep the banking industry healthy?

• excess money

• confidence

• liquidity

• excess regulation

A _______ asset is an asset that can be converted into cash quickly and with minimal impact to the price received.

What is the name for the interest rate that the Fed charges banks?

• federal rate

• savings rate

• premium interest rate

• discount rate

Which option does the Fed use the most to increase or decrease the money supply?

• Open Market Operations

• approval from the Illuminati

• change the discount rate

• changing the reserve requirement

What do banks mean by "excess reserve?"

• the amount of money that is left after paying employees

• the amount of money that banks must not use

• the amount of money banks are free to loan out

• the amount of money that is left after paying taxes

Which type of policy is better to use in a severe economic downturn?

• fiscal policy

• monetary policy

• foreign regulation

• communist policy