Monetary policy that makes credit expensive and in short supply is called:
Regulation set by the Fed requiring banks to keep a certain percentage of their deposits in cash is called:
Monetary policy that makes credit inexpensive and abundant is called:
A system in which only a fraction of the deposits in a bank is kept on hand is called:
Which of the following is a result of a loose monetary policy?
Which of the following is a result of a tight monetary policy?
Why would a country want a tight monetary policy?
Fractional reserve banking makes it possible for banks to:
The buying and selling of U.S. securities by the Fed to affect the money supply is called:
The rate of interest that banks charge on loans to their best business customers is called:
The interest rate that the Fed charges on loans to banks is called:
The interest rate that banks charge each other on loans is called:
If the Fed lowers the reserve requirement:
To decrease the money supply, the Fed can:
Which of the following might result if the Fed increases the discount rate?
A high prime rate:
One problem in carrying out monetary policy is the:
The Fed can affect the money supply by:
Which of the following is affected by decisions of the Federal Open Market Committee?
If the Federal Reserve adopts an expansionary monetary policy:
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