Last Pg Of Study Guide Flashcards
1
Q
What is the primary goal of the Federal Reserve
A
To check banks and regulate the economy
2
Q
Reserve requirements
A
Determines the percentage of money kept in reserve
3
Q
Open market operations
A
Buying and selling bonds to alter the supply of money
4
Q
Discount rate
A
Federal government can raise interest rates
5
Q
What is monetary policy
A
Actions the Federal Reserve takes to alter the money supply
6
Q
What is fiscal policy
A
The governments use of taxes and spending to keep the economy stable
7
Q
Expansionary fiscal policy
A
Intend to increase output, Cut taxes and increase spending
8
Q
Contractionary fiscal policy
A
Decreased output, raise taxes and a decrease spending
