The FED announces it will lower discount rates to banks. Why would the Fed take this action?
Monetary Policy

Quiz
•
Social Studies
•
11th Grade
•
Hard
Allan McConihe
Used 269+ times
FREE Resource
13 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Fear economy is falling into a recession
Fear the economy is growing too rapidly
The Fed has a few of tools to control swings in the economy
all of these
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The Fed issues an order to raise the reserve requirement on banks. What reason for this action?
Fear economy is falling into a recession
Fear the economy is growing too rapidly
The Fed has a few of tools to control swings in the economy
all of these
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The Fed's Open Market Committee sells millions of bonds to private brokers. Reason for action?
Fear economy is falling into a recession
Fear the economy is growing too rapidly
The Fed has a few of tools to control swings in the economy
all of these
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A major function of the Fed is to:
pass laws to regulate the economy
lend money to state governments
manage the supply of currency and bank credit
issue United States savings bonds to the poor
all of these
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of these is NOT an option for the Fed to consider when deciding monetary policy?
raise or lower reserve requirement
raise or lower discount rate
buy or sell U.S. Treasury Bonds
Taxing both individuals and business corporations alike
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If economy grows too rapidly, what is best option for the Fed consider for stabilizing economy?
increase reserve requirement
increase discount rate
sell U.S. Treasury Bonds
all of these
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which action could the Fed take to reduce the problem of recession?
cutting money spent on social programs
lowering discount rate
raising tariffs on foreign imports
reduce government spending
all of these
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