Federal Reserve

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1 point

When the Fed restricts available credit and forces interest rates up, it is pursuing a(n)

tight money policy

loose money policy

1 point

When the Fed raises reserve requirements,sells bonds, raises the discount rate they are

increasing the money supply

constricting the money supply

1 point

The governing body at the top of the Federal Reserve is

Board of Governors

Federal Reserve System

1 point

During a recession, the Fed would likely adopt

loose money policy

tight money policy

no money policy

1 point

The interest rate the Fed gives it's best customers is

prime rate

discount rate

1 point

A bank has 10 million in actual reserves of which 8 million are required reserves. It

can make 18 million in loans

can make 2 million in loans

1 point

Federal Reserve Banks

deal only with the government and financial institutions

offer individual checking accounts and cash checks

1 point

When the Fed lowers reserve requirements, sells bonds, and lowers the discount rate they are

expanding the money supply

constrict the money supply

1 point

The Fed's most important function is

control reserve requirements of member banks

claear checks

control the money supply

10.

1 point

The interest rate charged banks is the

prime rate

discount rate

11.

1 point

The Fed is made up of

12 district banks and 25 branch banks

is made up of district banks that operate independently form each other

12.

1 point

Actions taken by the Fed to control the money supply is

monetarism

monetary policy

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