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I NEED HELP (ASAP) FOR ECONOMICS!!! REAL ANSWERS ONLY NO GUESS ANSWERS!! 50 points

1. What does "monetary policy" mean?
A. political policies pursued by the federal government
B. Actions the Federal Reserve takes to influence the economy
C. Federal Reserve policies on creating new banks
D. decisions about how much the Federal Reserve charges its members

2. Who appoints the members of the Board of Governers of the Federal Reserve?
A. the U.S. President
B. the U.S. senate
C. the state governers
D. the state legislatures of the states represented

3. How many Federal Reserve Districts are there?
A. 8
B. 12
C. 24
D. 52

4. Who issues U.S. paper currency?
A. the Treasury Department
B. the U.S. Mint
C. the district Federal Reserve Banks
D. the U.S. bank examiners

5. what is the function of a bank examiner?
A. to make sure banks are open in laws and regulations
B. to respond to banks about their daily reports to the Fed
C. to carry on day-to-day functions within the bank
D. to oversee decisions about major loans by each bank

Respuesta :

deannahoff

Answer:

1. C

2. D

3. C

4. A

5. A

Explanation:

Answer:

  1. B
  2. A
  3. B
  4. A
  5. A

Explanation:

  1. The monetary policy is one of the jobs of the central bank in which they either increase or decrease the money supply to grow or slow the economy.  
  2. Since the Board of the Governers has a very significant role in      developing the monetary Policy that is why they are appointed by The President.
  3. There are 12 federal reserve districts: Boston, Newyork, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco.
  4. The Treasury Department is responsible for printing the paper currency of the U.S. which is referred to as Dollars.
  5. The main function of a bank examiner is to oversee that banks are operating under the legal framework which is provided to them by the Government.

Monetary Policy further Explained:

There are two types of Monetary Policies by which Central Bank can manipulate the Interest Rate (indirectly as they don’t have direct authority to change the interest rate of commercial banks) and consequently impacting the overall economy:

  • Expansionary Monetary Policy: The main idea of this policy is to speed up the economy, The Central Bank increases the money supply which results in a lot of money in banks and borrowers are looking for the best deal so because of the competition between the banks they have to lower the Interest rate.
  • Contractionary Monetary Policies: The main ideas here is to slow the economy, The Central Bank decreases the money supply due to which banks have less money and the less competition which results in high-interest rates which then affects the borrower’s spending.  

Monetary Policy Objectives:

  • Keep the economy growing overtime which is measured by GDP.
  • Limit unemployment which is measured by Unemployment rate.
  • Keep prices stable which is measured by Inflation Rate.

   

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