Monetary Policy

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The required reserve ratio ranges from

0-10

The federal reserve has ____ regional banks and ____ members of the board of governors.

12;7

Who is the current Chair of the Federal Reserve Board of​ Governors?

Jerome Powell

An increase in the interest rate causes

a movement up along the money demand curve

The Board of Governors of the Federal Reserve System is

appointed by the President of the United States and confirmed by the U.S. Senate

The three main policy tools the Federal Reserve System uses to conduct monetary policy are setting the

discount​ rate, open market​ operations, and setting the required reserve ratio

The Fed can simultaneously reduce the inflation rate and stimulate growth through lowering interest rates

false

Which part of the Federal Reserve System meets every 6 weeks to determine the​ nation's monetary​ policy?

federal open market committee

If the​ Fed's policies aim to decrease aggregate​ demand, the Fed must fear

inflation

The federal funds rate is

the interest rate banks charge each other for overnight loans

Open market operations are used

to change the quantity of reserves in the banking system.

The federal funds rate

is determined by the supply of and demand for bank reserves


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