Monetary Policy: The Federal Reserve Answers

unemployment✔ inflationstagflation

Free Banking Act✔ National Banking ActFederal Reserve Act

Depression of 1865Panic of 1893✔ Panic of 1907

higher✔ lower

✔ a decreasean increase

Choose the best word or phrase from each drop-down menu.

✔ buysell

decreases✔ increases

Choose the best word or phrase from each drop-down menu. The Federal Reserve increases the money supply when it is trying to encourage the economy to . Consumers are more willing to spend using credit when the money supply is higher because interest rates are . One major positive effect of increasing the money supply is in the unemployment rate.

Based on the information presented in the video, which of the following is likely to occur as a result of the Fed decreasing the money supply? Check all that apply.

Based on the information presented in the video, what is the main goal of buying and selling government securities?

Now, write a paragraph explaining how the Fed responded to the financial crisis that began in 2008.Be sure to include how the Fed protected banks and why this was so important.

What did you include in your response? Check any that apply.

Choose the best word or phrase from each drop-down menu. Open market operations influence the directly. In order to lower the Federal Funds Rate, the Fed will securities, which the money supply in banks.