National Economic Strategies & The Federal Reserve Review

The supervising body of the Federal Reserve that is responsible for providing general guidance to the Fed and supervising the regional banks is called the Board of ____.

governors

which of the following are ways that the United States government provides ongoing economic support? (choose all that apply)

•promoting innovation and invention •assuring the nation's financial institutions remain healthy •supporting jobless workers with unemployment insurance

How many regional Federal Reserve banks are there?

12

__ policy refers to changes in federal taxation and spending that are designed to influence the economy.

Fiscal

government policies designed to create economic growth by increasing aggregate demand are called ____.

demand-side policies

the reserve requirement is the percentage of ____ that banks must hold in reserve.

deposits

the management of a nation's money supply and interest rates is called ___ policy

monetary

One of the Federal Reserve's responsibilities is regulating financial institutions. Which of the following are the purposes of the Federal Reserve's oversight and regulation? (choose all that apply)

•fostering stability in financial markets •ensuring compliance with applicable laws and regulations •promoting the safety and soundness of the banking system

which of the following are examples of monetary policy strategies the government can use to encourage economic growth and lower unemployment? (choose all that apply)

•increasing the money supply •lowering interest rates

which of the following would happen if the Federal Reserve raised the reserve requirement? (choose all that apply)

•it would reduce the amount of money banks could lead. •it would lead to higher interest rates.