Monetary Policy: The Federal Reserve Answers

6 verified answers
1
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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

A
reducing employment
B
influencing the business cycle
C
reducing economic growth
D
encouraging economic growth
E
avoiding periods of time where little credit is available
2
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Which factor most directly influences how much money consumers are willing to borrow?

A
influencing economic growth
B
influencing unemployment rates
C
changing inflation rates
D
changing interest rates
3

Choose the best word from each drop-down menu.

Answers:
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
4

Choose the best word from each drop-down menu.

Answers:
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

✔ expansionaryX contractionary

A
✔ expansionary
B
X contractionary
6

X expansionary ✔ contractionary

A
X expansionary
B
✔ contractionary

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