Monetary Policy: The Federal Reserve Answers

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 .

When the Fed carries out open market operations to lower the Federal Funds Rate, the money supply and available credit will likely .

In this scenario, what is the Fed trying to do by increasing interest rates? Check all that apply.

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

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

higher✔ lower

✔ a decreasean increase

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.Employers will bring on large numbers of new employees.The inflation rate will stop growing or decrease.Consumers will spend less money, causing an economic slowdown.Prices for durable goods will increase dramatically.The unemployment rate may rise.

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

✔ buysell

decreases✔ increases

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

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