Monetary Policy: The Federal Reserve

Question 1

most likely

Revolt · Accepted Answer

Interest rates will decrease.

Question 2

[BLANK]

Revolt · Accepted Answer

Contractionary

Question 3

What is a potential negative effect of an expansionary policy?

Revolt · Accepted Answer

increased inflation

Question 4

best

Revolt · Accepted Answer

steer the economy away from recession and toward growth

Question 5

What is the full name of the US central bank, known as the Fed?

Revolt · Accepted Answer

the Federal Reserve Bank

Question 6

best

Revolt · Accepted Answer

limiting inflation and reducing unemployment

Question 7

When the Fed adjusts its interest rate, it directly influences consumer

Revolt · Accepted Answer

borrowing.

Question 8

The Fed’s use of open market operations affects banks’

Revolt · Accepted Answer

money available to lend.

Question 9

In how many cities are Federal Reserve district banks located?

Revolt · Accepted Answer

12

Question 10

Why is the Fed often referred to as a “lender of last resort,” or the last lender to turn to in a crisis?

Revolt · Accepted Answer

It offers banks financial protection to keep consumers from panicking.

Monetary Policy: The Federal Reserve Answers