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