In order to control the supply of money in the country
100
The Federal Reserve serves as a _____ for the government.
Bank
100
What does FED stand for?
Federal Reserve System
100
What is Mr. Stirling's first name?
Jeff
200
When was the Federal Reserve established?
1913
200
What can happen when consumer spending is low?
Unemployment will increase.
200
Through the Federal Reserve, financial institutions can...
borrow money
200
Define interest rate
A rate which is charged or paid for the use of money.
200
How many days of school are left for juniors, sophomores, and freshmen? (counting today)
10.5 :)))
300
What is the primary purpose of the Federal Reserve?
To regulate the flow of money and credit in the country.
300
What is the main purpose of the Monetary Policy?
Supervises and regulates banks and bank holding companies, and provides financial services for banks and the U.S. government.
300
The Federal Reserve can:
a.) raise interest rates
b.) lower interest rates
c.) both a.) and b.)
c.) raise AND lower interest rates.
300
Define inflation
The overall general upward price movement of goods and services in an economy (often caused by a increase in the supply of money).
300
What is Kendall's favorite color?
Turquoise
400
Who makes up the Federal Reserve?
Made up of the Federal Open Market Committee which is the Board of Governs, the 12 Federal Reserve Banks
400
What happens in a contractionary policy?
The monetary policy seeks to reduce the size of the money supply in order to slow inflation.
400
The Federal Reserve is "two banks in one", explain how.
It is the government's bank and the bank for the bankers.
400
Sum up the Federal Reserve
The federal banking authority in the US that performs the functions of a central bank and is used to implement the country's monetary policy, providing a national system of reserve cash available to banks.
400
Who appoints the members for the Board of Governs?
The President
500
Who is the current chairman of the Federal Reserve?
Ben Bernanke
500
What does the Federal Reserve use the Monetary Policy to do?
To promote the objectives of maximum employment, stable prices, and moderate long-term interest rates.
500
Give two main functions of the Federal Reserve
Keeps employment stable
Keep inflation low
Serves as a bank for banks
500
What is an expansionary policy?
When the monetary policy seeks to increase the size of the money supply in order to combat unemployment in a recession by lowering interest rates.
500
Which President signed the Federal Reserve Act in 1913 to create the Federal Reserve System?