Monetary Policy
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
