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Economics

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Felton O'Hara

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Cards in this guide (21)
Who sets prime rate

the Federal Open Market Committee (FOMC),

What is the Role of central bank in implementing monetary policy

inside lag

What is the crowding-out effect

A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect

How well did the Federal Reserve Banks perform during the Great Depression

The federal reserve banks did wellduring the depression due to regulations. The bank ended the depression

Which of the following tools is an example of monetary policy

the government restricts the amount of money that banks can lend.

What is one service the fed performs for the treasury department

It processes payments, such as Social Security checks.

What is the function of a bank examiner

to make sure the banks are obeying laws and regulations

What is one possible short-term effect of an easy money policy

increased investment spending

The federal budget is put together

by congress and the whitehouse

What changes were made to the Federal Reserve system in 1935

The federal reserve system was given more centralized power

What are the main components in the Federal Reserve banks

The Federal Open Market Committee. The Federal Open Market Committee (FOMC) consists of seven Federal Reserve Board members and five Federal Reserve bank representatives. The FOMC sets monetary policy by.

What change in monetary policy could eventually cause overborrowing and overinvestment

a decrease in the money supply

When the Fed buys government bonds and other securities on the open market

Open-market operations

What is it called when banks record which account gives up mpney and which account receives money when a customer writes a check

Check Clearing

What is the abbreviation for the research arm of the federal reserve

FAC (Federal Advisory Councel)

How do you change federal funds rate

The federal funds rate is the interest rate banks charge on loans in the federal funds market. The federal funds rate is not set administratively by the Fed. Instead, the rate is determined by the supply of reserves relative to the demand for them.

How can monetary policy makers help smooth out fluctuations of the business cycle

They can utilize and hone the practice of good timing.

What can be expected when members of the baby boom generation begin to retire in large numbers

increased deficits

Who appoints the members of the Board of Governors of the Federal Reserve

the U.S. President

In The Recent Past The Federal Reserve Has Set The Discount Rate

above the federal funds rate

If government officials are calculating the amount of money the federal government borrows for one fiscal year, they are _____.

calculating a budget deficit

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