Econ lowdown In Plain English
Imagine this scenario: the inflation rate has fallen from 4 percent to 1 percent. How would you label this
change in price level? - ANS - disinflation
Which of the following is not a mone
...
Econ lowdown In Plain English
Imagine this scenario: the inflation rate has fallen from 4 percent to 1 percent. How would you label this
change in price level? - ANS - disinflation
Which of the following is not a monetary policy tool used by the Federal Reserve? - ANS - prime rate
Which would most closely reflect the strategy of price stability of the Federal Reserve? - ANS - an
inflation rate that remains steady at 2 percent
What is the Federal Reserve's chief body for monetary policy? - ANS - FOMC
While it does not directly set this rate, the Federal Open Market Committee (FOMC) set a target for
which of the following rates? - ANS - federal funds rate
Which part of the Federal Reserve System serves the daily needs of banks across the country? - ANS -
reserve banks
Which actions would the FOMC likely take if it were to pursue contractionary monetary policy using
open market operations? - ANS - sell government securities
What is the Federal Reserve's most frequently used tool for conducting monetary policy? - ANS - open
market operations
Which of the following is not one of the three responsibilities of the Federal Reserve System? - ANS -
lending money to consumers
When was the Federal Reserve established? - ANS - 1913
How long is the term of a Federal Reserve governor? - ANS - 14 years
The Federal Reserve is audited on an annual basis. - ANS - true
All but one president of the regional Reserve Banks rotates a voting position on the Federal Open
Market Committee (FOMC). Which president has permanent voting privileges? - ANS - federal reserve
bank of new york
How are members of the Board of Governors chosen? - ANS - appointed by the president of the United
States, confirmed by the us senate
The interest rate Reserve Banks charge commercial banks for short-term loans is the - ANS - discount
rate
How many voting members are on the FOMC? - ANS - 7
How many districts are there in the Federal Reserve System? - ANS - 12
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