Monetary Policy

Monetary Policy

by: Caritester

Now that you have learned about monetary policy and the Federal Reserve answer the following questions:

  1. 1

    The Federal Reserve consists of how many banks?

  2. 2

    Monetary policy is

  3. 3

    What effect would an increase in the discount rate have on the money supply?

  4. 4

    Which of the following is NOT used by the Federal Reserve to change the money supply?

  5. 5

    Why does a bank sometimes hold excess reserves?

  6. 6

    Why does the Federal Reserve alter monetary policy?

  7. 7

    How could the Federal Reserve encourage banks to lend out more of their reserves?

  8. 8

    An example of expansionary monetary policy would be

  9. 9

    The Federal Reserve was created in

  10. 10

    The Fed board of governors has

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