Money & Banking

Buying bonds, lowering the reserve requirement, and reducing the discount rate are all examples of which type of monetary policy?

• Expansionary Policy

• Contractionary Policy

• Recesssinary Policy

• Fiscal Policy

Which of the following is something the Federal Reserve might to in order to increase the supply the money?

• Raise the discount rate

• Lower the reserve requirement ration

• Sell bonds

• Raise the RRR

Which of the following is the most used tool of monetary policy?

• Open market operations

• Raising/lower the RRR

• Raising/lowering the discount rate

The ____________ is the interest rate that the FED charges member banks.

Which type of currency does the US use?

• Decentralized

• Commodity

• Fiat

• Representative

___________ currency is money that's value comes from what it is made out from

• Fiat

• Commodity

• Representative

• Decentralized

Cryptocurrency is an example of which currency?

• Fiat

• Decentralized

• Commodity

• Representative

Which of the following is NOT a job of commercial banks.

• Store Money

• Loan money to customers

• Make money for investors

• Provide free/cheap banking services to a select amount of customers.

_________ is a theory that suggests that rapid changes in the money supply are the main cause of econmoic instability.

• Monetary policy

• Monetarism

• Inflationary

• FOMC

______ is the amount of money that member banks must keep in reserves in order to bank with the federal reserve.