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9 Cards in this Set
- Front
- Back
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________monetary policy involves decreasing the money supply. |
Contractionary |
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Which of these is a banking activity of the Fed? |
storing money for banks |
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In how many cities are Federal Reserve district banks located? |
12 |
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Which statement describes how borrowers will most likely benefit when the Fed reduces reserve requirements? |
Interest rates will likely decrease. |
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Which statement best describes how the Fed’s use of open market operations affects banks? |
It affects banks' liquidity. |
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Which best describes what a central bank uses monetary policy to do? |
steer the economy away from recession and toward growth |
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The _______ loan interest rate is the interest rate banks charge each other for borrowing or storing money. |
federal funds |
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When inflation is ____ , the Fed aims to slow the economy. |
high |
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Which best describes a central bank's primary role? |
creating monetary policy |
