Monetary Policy Tools
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Last updated about 6 years ago
10 questions
1
An easy/expansionary monetary policy is used to address what economic problem?
An easy/expansionary monetary policy is used to address what economic problem?
1
A tight/contractionary monetary policy is used to address what economic problem?
A tight/contractionary monetary policy is used to address what economic problem?
1
Who controls monetary policy?
Who controls monetary policy?
1
The interest rate the Fed charges banks when they borrow from the Fed is called
The interest rate the Fed charges banks when they borrow from the Fed is called
1
The percentage that banks must set aside when customers deposit money in the bank is called
The percentage that banks must set aside when customers deposit money in the bank is called
1
The buying and selling of government securities/bonds is called
The buying and selling of government securities/bonds is called
1
Which of the following monetary policy tool combinations would be appropriate during a recession?
Which of the following monetary policy tool combinations would be appropriate during a recession?
1
Which of the following monetary policy tool combinations would be appropriate during periods of inflation?
Which of the following monetary policy tool combinations would be appropriate during periods of inflation?
1
Increasing the money supply will cause interest rates to increase.
Increasing the money supply will cause interest rates to increase.
1
If the Fed buys bonds, lowers the reserve requirement, or lowers the discount rate then aggregate demand and real GDP will change in which of the following ways?
If the Fed buys bonds, lowers the reserve requirement, or lowers the discount rate then aggregate demand and real GDP will change in which of the following ways?