The Federal Reserve System

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The Federal Reserve System was created in _____ in the midst of the Great Depression.

1933

Which of the following is most closely associated with the Federal Reserve's role as the government's bank?

The Fed produces the nation's paper currency and decides how many bills to produce and destroy.

If the Federal Reserve wishes to increase the money supply, it will _____.

buy Treasury notes and bonds

Samantha is a newly appointed member of the Federal Reserve. If inflation is increasing, it is likely that Samantha and her colleagues will recommend that the Fed _____.

increase the discount rate

A bank's _____ is the percentage of deposits that a bank must hold with a Federal Reserve Bank.

reserve requirement


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