Understanding the Impact of the Federal Reserve on the U.S. Economy Quiz

Monetary Policy is a primary tool used by the Federal Reserve to influence the economy.

The Federal Reserve Act gave rise to the establishment of the Federal Reserve System in 1913.

Conducting Fiscal Policy is NOT one of the Federal Reserve's main functions.

Income Equality is NOT one of the Federal Reserve's monetary policy goals.

Printing Currency is NOT a responsibility of the Federal Reserve.

Controlling the Money Supply is a responsibility of the Federal Reserve System.

Federal Funds Rate is the interest rate at which banks lend reserves to each other overnight.

Selling government securities is considered contractionary monetary policy.

The dual mandate of the Federal Reserve is Price Stability and Full Employment.

Open Market Operations is a tool used by the Federal Reserve to control the money supply.

Open Market Operations is the term used to describe the buying and selling of government securities by the Federal Reserve in the open market.

Expansionary Monetary Policy is the period when the Federal Reserve increases the money supply and lowers interest rates to stimulate economic activity.

Reserve Ratio is the amount of money banks are required to hold in reserve.

The Federal Reserve Bank of New York is located in New York and is considered the most influential.

Quantitative Easing is the term used to describe the purchase of government securities by the Federal Reserve.

In the context of monetary policy, 'FOMC' stands for Federal Open Market Committee.

Reserve Ratio is the ratio of reserves to deposits that banks are required to maintain.

A decrease in interest rates is a characteristic of expansionary monetary policy.