Ch 24 The Federal Reserve System and Monetary policy

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  1. What controls the nation money reserve supply?
    Federal Reserve Banks
  2. What are the reserve requirements to slow down the econmy?
    • they want less money supply
    • increases numbers of loans given out
    • tighten money policy maeaning it is hard to get a loan
    • interest rates goes up
  3. What are the reserve requirements to stimulate the economy?
    • they want to increase the money supply
    • decrease reserve requirements
    • easy money policy meaning easy to get a loan
    • decreases interest rates
  4. How many federal reserve banks are there?
  5. Which bank are we (LA) serve by and where is it?
    6th district in Alanta
  6. When was the FED or Federal Reserve System first started?
  7. What does buying bonds do to the economy?
    • sitimulate the economy
    • increases money supply
  8. What does selling bonds do to the economy?
    • decreases the money supply
    • slow down economy
  9. Lowering the discount rate would do what to the economy?
    • simulate economy
    • increases money supply
  10. slow down economy discount rates does what?
    • increases discount rates
    • decreases money supply

Card Set Information

Ch 24 The Federal Reserve System and Monetary policy
2010-12-09 23:30:12
Free Enterprise 10th grade

Free Enterprise class for 10 grade on the federal reserve system and monetary policy
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