Monetary Policy Questions

Which body of governance is in charge of monetary policy ?

• The Federal Reserve

• The US Congress

• President and Vice President

• Local Government and Municipalities

What ways/actions of fiscal policy can be taken to influence the economy?

• Increasing government spending and decreasing taxes

• Decreasing discount rates for banks

• Maintaining the money supply

• Implementing high reserve requirements

Which of the following is a way/action of monetary policy that can be taken to influence the economy?

• Increasing government spending

• Adjusting interest rates

• Implementing tax cuts

• Regulating trade policies

How many Federal bank districts are there in the United States

• 13

• 50

• 12

• 270

Which option is not a way which the Federal Reserve manages the money supply?

• Open Market

• Increasing Government Spending

• Reserve Requirement

• Discount Rate

How are the Federal Reserve Chairs selected and for how long?

• Voted in by Top 500 Corportations, for life.

• Appointed by the President for 12 years

• Appointed by the Treasury Secretary for 14 years

• Appointed by the President, Senate approval for 4 years

Under what circumstances is it better to grow the money supply?

• During periods of economic recession to stimulate growth.

• When inflation is high to curb spending.

• When unemployment is low and the economy is overheating.

• During periods of high prices and increased spending.

What should a government do to ensure that money continues to flow through an economy at an appropriate level?

• Implement monetary policies

• Descrease taxes

• Reduce government spending

• Encourage imports

How does the Reserve requirement impact the supply of money in the economy?

• The higher the reserve requirement the more money to loan.

• No impact

• The lower the reserve requirement the more money to loan.

• The lower the reserve requirement the less money to loan.

Who is the current Federal Reserve chair?

• Jonathan Majors

• Barack Obama

• Janet Yellen

• Jerome Powell