Econ chapter. 28

Which of the following institutions oversees the safety and stability of the U.S. banking system?

Which of the following is a traditional tool used by the Fed during recessions?

Which of the following terms is used to describe the proportion of deposits that banks are legally required to deposit with the central bank?

What term is used to describe the interest rate charged by the central bank when the central bank makes loans to commercial banks?

A central bank that wants to increase the quantity of money in the economy will:

When the central bank decides it will sell bonds using open market operations:

Which of the following events would cause interest rates to increase?

When a Central Bank acts to decrease the money supply and increase the interest rate, it is following:

When banks hold excess reserves because they don't see good lending opportunities:

When the central bank reduces the reserve requirement on deposits:

the most commonly used tool of monetary policy in the U.S. is open market operations.

Reserve requirements are usually drastically changed while conducting monetary policy.

The velocity of circulation "V" is defined as the average number of times a dollar bill circulates in the economy per year.