Monetary Policy Vocabulary
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Last updated about 6 years ago
7 questions
1
Which component of the Federal Reserve System holds the most power in regards to day to day monetary policy?
Which component of the Federal Reserve System holds the most power in regards to day to day monetary policy?
1
Which of the following is the best example of money serving as a medium of exchange?
Which of the following is the best example of money serving as a medium of exchange?
1
The process by which the Federal Reserve controls the money supply, availability, and cost of money in order to keep the economy stable is
The process by which the Federal Reserve controls the money supply, availability, and cost of money in order to keep the economy stable is
1
Regulating the amount of demand deposits that banks must hold back and not loan refers to which tool of monetary policy?
Regulating the amount of demand deposits that banks must hold back and not loan refers to which tool of monetary policy?
1
The interest charged when financial institutions borrow money directly from the Federal Reserve
The interest charged when financial institutions borrow money directly from the Federal Reserve
1
The buying and selling of government securities/bonds to influence the money supply
The buying and selling of government securities/bonds to influence the money supply
1
The rate of return received by banks for their deposits at the Federal Reserve
The rate of return received by banks for their deposits at the Federal Reserve