Identify the goals of the central bank when creating monetary policy. Check all that apply.reducing employmentinfluencing the business cyclereducing economic growthencouraging economic growthavoiding periods of time where little credit is available
expansionaryX contractionary
X expansionary contractionary
Which factor most directly influences how much money consumers are willing to borrow?
✔ expansionarycontractionary
state bankcentral bankdistrict bank
interest ratessecurities
In this scenario, what is the Fed trying to do by increasing interest rates? Check all that apply.
✔ stabilityinflationrecessions
Federal Reserve Interest RateLoan Interest RateFederal Funds Rate
Private banksThe ConstitutionThe Federal Reserve Act of 1913
increasedecreasestay the same
Increasing the amount of credit that is available within an economy is done through monetary policy.
The potential to cause inflation is accompanied by monetary policy.
A(n) monetary policy can cause interest rates to increase.
The Federal Reserve is the within the United States.
The Federal Reserve’s role is to promote economic growth and by enacting monetary policy.
established the Federal Reserve system to avoid consumer panics.
The Fed uses open market operations by buying and selling .
The rate at which banks lend money and charge one another for storing money in the Fed is known as the .
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