econ fed test policy Flashcards
1
Q
Define Monetary Policy**
A
How the Federal Reserve influences the supply of money and brings the nation out of either a recession or inflationary period.
2
Q
Define Federal Reserve
A
A national system of banks that influence and control the economy and the money supply
3
Q
how federal reserve help the nation out of a recession
A
To get out of a recession, the Fed encourages people to spend by increasing the money supply.
4
Q
three tools of the federal reserve
A
Reserve Requirement
Discount Rate
Open-Market Operations
4
Q
how federal reserve helps nation out of an inflationary period
A
the Fed discourages people from spending by decreasing the money supply.
