Exam 21: The Federal Reserve and Monetary Policy

In 1975 Congress passed a resolution that the Fed must publish its targets for growth in the money supply.The general effect of that resolution has been to

The discount rate is

Increasing bank reserves would be an appropriate measure

The table below shows the net effect of an open market operation undertaken by the Fed. Use it to answer the following question. -The Fed can decrease the money supply by

In 1965,President Johnson opposed a tax increase recommended by his economic advisers because

In the United States today,which of the following functions as the central bank?

If commercial banks have no excess reserves and the Fed sells government securities

When monetary authorities increase the money supply and push down interest rates,they are pursuing a(n)________ money policy.

The Federal Reserve's most important tool for controlling the amount of reserves in the banking system is

When the Fed buys government securities on the open market

-If the economy's aggregate demand and supply curves are AD₁ and AS₁,an increase in the money supply will:

When monetary authorities decrease the money supply and push up interest rates,they are pursuing a(n)________ money policy.

The most important function of a central bank is to

The Board of Governors of the Federal Reserve System is made up of

If monetary authorities tighten credit or money,________ will rise.

Between 1929 and 1931,about 2,000 banks failed across the United States.A major reason for this was probably that the Fed

Increases in the discount rate tend to tighten the money supply by

When the Fed sells government securities on the open market

If a commercial bank has $8 million in demand deposits and $1.4 million in legal reserves and the legal reserve requirement is 16 percent,then the bank has excess reserves of

The major indicators of monetary tightness or ease are the