Somebody help please sentences, what the Fed does, how it impacts banks, how it irn1. An economic slow-down (Interest on Reserves)a. What should the Fed do?b. Why would that work?2. Inflation is rising (Discount Rate)a. What should the Fed do?b. Why would that work?3. Unemployment is rising (Reserve Requirement)a. What should the Fed do?b. Why would that work?4. Too many loans (Open Market Operations)a. What should the Fed do?b. Why would that work?5. Hard to get a loan (Interest on Reserves)a. What should the Fed do?b. Why would that work?6. Too much saving (Discount Rate)a. What should the Fed do?b. Why would that work?hp

Monetary policy is the policy of central bank where the bank applies certain instruments like…

Answered: 1. An economic slow-down (Interest on…

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter14: Money And The Federal Reserve System

Section14.4: What A Federal Reserve Bank Does

Problem 1YTE

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1) when the fed realises that inflation is going up at an unstable rate for the economy , which of the following are they most likely do ? (a) print more money (b) increase the discount rate (c) lover the reserve ratio
Read the event The Federal Reserve raises reserve requirements. What would likely result from this event? A. An economy would see a slight decrease in aggregate demand. B. Interest rates on loans decline. C. Consumer demand would increase thus increasing prices. D. Inflation would reach levels that are acceptable for full employment.
8
The Fed believes if inflation is high and GDP is high, unemployment is likely to: a. Increase b. Decrease c. Remain the same d. Invert
Which of the following actions by the Fed would cause interest rates to fall? A. Raising the discount rate B. Purchasing bonds from commercial bank C. Raising the reserve requirement D. None of the above
The economy's unemployment rate is 2% and the inflation rate is 18%. The most appropriate policy for the Governor of the New York Fed to pursue would be: a. do nothing because the unemployment rate is too low.b. increase the money supply to try to reduce the unemployment rate. c. increase the money supply to try and increase the unemployment rate. d. none of the other responses are correct. e. reduce the money supply to try to reduce the inflation rate.
The Board of Governors a. sets the Discount Rate b. sets the requirement for purchasing equities c. sets margin requirements for stock purchases Both a. and c. All of the above QUESTION 9 The Federal Reserve Goal Independence includes which of the following? a. The ability to set goals of monetary policy. b. The operation of the Fed Funds Window. c. The performance of Open Market stock purchases. Both a. and c. O All of the above QUESTION 10 Fed actions affect a. inflation b. money supply c. interest rates Both a. and c. All of the above
57)As the economy grows and GDP grows what will happen if the Fed does not increase the money supply at all to keep pace with economic growth? Select one: a. Interest rates will fall since there is an excess of money supplied. This will improve economic growth in the long run. b. Interest rates will rise since there is an excess of money supplied. This will improve economic growth in the long run. c. Interest rates will rise since there is an excess of money demanded. This will stifle economic growth in the long run. d. Interest rates will rise since economic growth will cause a budget deficit. This will stifle economic growth in the long run.
35)Why is the 1982 recession called a textbook recession? Select one: a. The textbooks say inflation was not a problem in 1982 and Paul Volcker made a mistake by causing a recession b. The textbooks say that if inflation is too high then the Fed has to raise the interest rate to curb spending c. The textbooks say that if inflation is too high then the Fed must lower the interest rate to curb (decrease) spending d. The textbooks say that if inflation is too high then the Fed must do nothing
The Fed is very concerned about the stability of financial markets. When individuals and firms are concerned about how markets are operating, you will find that spending could slow down. Explain how the Fed can provide stability to markets and how does the Fed impact your daily decisions.
Which statement explains how the Federal Reserve can control rising inflation?
22. The Federal Reserve System achieves its goals in the following way O A. controlling interest rates to influence investment and economic activity O B. setting the inflation rate by controlling prices O C. controlling the spending by banks to influence economic activity O D. provide unemployment insurance to lessen the burden of unemployment on the labor force.

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1. An economic slow-down (Interest on Reserves) a. What should the Fed do? b. Why would that work? 2. Inflation is rising (Discount Rate) a. What should the Fed do? b. Why would that work? 3. Unemployment is rising (Reserve Requirement) a. What should the Fed do? b. Why would that work?