The Money Pie
The Fed
How Banks Work
More on the Fed
100
The deliberate control of the money supply by the Fed.
What is monetary policy?
100

Who is the central bank for the US government

The Federal Reserve


100

The difference between the amount borrowed and the amount you have to repay

Interest

100
The number of Federal Reserve districts.
What is 12?
200

The money supply increases when banks do this.

Give out loans

200
the major policy-making group within the Federal Reserve System.
What is the FOMC
200
the minimum amount of reserves a bank must hold against its deposit, as mandated by the Fed.
What is the reserve requirement?
200

When interests rates go up what happens in theory to the supply of loans

Increase

300

The form of currency declared valuable because the government says so

Fiat Money

300
The interest the Fed charges a bank for a loan.
What is the discount rate?
300

When depositors pull their money from banks leading to their closure

Bank Runs

300

Function of the Fed to prevent banks from failing

Give loans to banks (Lender of Last Resort)

400

Form of money that is backed by something that is valuable

Representative Money

400
The buying and selling of government securities by the Fed.
What are open-market operations?
400

System where banks only keep a portion of money deposited at the bank and loan out the rest

Fractional Reserve Banking

400

This happens to the money supply when the reserve requirement is raised.

What is decreases?

500

Form of money that in itself has value

Commodity Money

500
The activities of the Federal Reserve are controlled and coordinated by _____.
What is the Fed's board of governors?
500

Insures money in banks to prevent future bank runs

Federal Deposit Insurance Corporation (FDIC)

500

When the Fed sells securities this happens to the money supply.

What is decreases?

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