Sort the following tools into increasing and decreasing the money supply.
(FED) Sell Bonds
Influence an Increase in the FFR
(FED) Buy Bonds
Increase the DR
Influence a Decrease in the FFR
Decrease the RR
Decrease the DR
Increase the RR
Increase the Money Supply
Decrease the Money Supply
Sort the following into expansionary and contractionary monetary policy.
Increase the DR
Decrease the RR
Increase the RR
Decrease the DR
(FED) More Buying OMOs
Influence a Decrease in the FFR
(FED) Less Buying OMOs
Influence an Increase in the FFR
Expansionary Monetary Policy
Contractionary Monetary Policy
Sort into the appropriate category
The Fed influences an increase in the Federal Funds Rate.
Qd of Money > Qs of Money
Credit cards increase their average percentage rates (APRs)
Nominal Interest Rates Fall
Qd of Money < Qs of Money
The Fed does more purchasing OMOs
Deflation hits the US economy
Banks raise ATM fees
The Fed increases the discount rate
The Fed lowers the reserve requirement.
The economy is booming and more households are finding employment
Nominal Interest Rates Rise
Supply of Money Increases
Supply of Money Decreases
Demand of Money Increases
Demand of Money Decreases
Shortage of Money
Surplus of Money