federal reserve practice

Which statement best describes the difference between expansionary and contractionary monetary policy?

Expansionary is focused on increasing the money supply, while contractionary reduces the money supply

what is the federal reserve's chief body for monetary policy?

FOMC

the interest rate reserve banks charge commercial banks for short-term loans

discount rate

the fed lowers the discount rate

expansionary

a high discount rate encourages lending and spending by consumers and businesses

false

the portions of deposits that banks must hold in reserve, either in their vaults or on deposit at a reserve bank

reserve requirement

a decrease in reserve requirements is expansionary because it increases the funds available in the banking system to lend to consumers and businesses

true

what is the target rate for inflation

2%

what is the target rate for maximum employment?

2% maybe

How many Federal Reserve Districts are there?

12

How long is the term of a federal reserve governor?

14 years

The goals of monetary policy include which of the following?

Maximum employment, and stable prices

Which of the following are part of the Federal Reserve System?

The federal open markey committee, the regional reserve banks, the board of governers

How are members of the board of governors chosen?

appointed by the president of the United States, confirmed by the U.S. Senate

the fed increase the reserve requirement

contractionary