5.5 Monetary Policy: The Federal Reserve

Question 1

✔ expansionarycontractionary

Revolt · Accepted Answer

expansionary

Question 2

expansionaryX contractionary

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expansionary

Question 3

X expansionary contractionary

Revolt · Accepted Answer

contractionary

Question 4

state bankcentral bankdistrict bank

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central bank

Question 5

interest ratessecurities

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securities

Question 6

Identify the goals of the central bank when creating monetary policy. Check all that apply.reducing employmentinfluencing the business cyclereducing economic growthencouraging economic growthavoiding periods of time where little credit is available

Revolt · Accepted Answer

influencing the business cycle; encouraging economic growth; avoiding periods of time where little credit is available

Question 7

Which factor most directly influences how much money consumers are willing to borrow?

Revolt · Accepted Answer

changing interest rates

Question 8

Choose the best word or phrase from each drop-down menu.

Revolt · Accepted Answer

✔ central bank; The Federal Reserve is the within the United States.: central bank; The Federal Reserve’s role is to promote economic growth and by enacting monetary policy.: stability; established the Federal Reserve system to avoid consumer panics.: The Federal Reserve Act of 1913

Question 9

Choose the best word or phrase from each drop-down menu.

Revolt · Accepted Answer

✔ securities; The Fed uses open market operations by buying and selling .: securities; The rate at which banks lend money and charge one another for storing money in the Fed is known as the .: Federal Funds Rate; When the Fed carries out open market operations to lower the Federal Funds Rate, the money supply and available credit will likely .: increase

Question 10

Choose the best word from each drop-down menu.

Revolt · Accepted Answer

expansionary; Increasing the amount of credit that is available within an economy is done through monetary policy.: expansionary; The potential to cause inflation is accompanied by monetary policy.: expansionary; A(n) monetary policy can cause interest rates to increase.: contractionary

5.5 Monetary Policy: The Federal Reserve Answers

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