Exam: 04.04 The Feds Toolbox Quiz – Flashcards

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question
Through which tool does the Federal Reserve affect money available for banks to loan?
answer
Reserve requirement
question
Which of the following actions would the Federal Reserve most likely take to reduce unemployment?
answer
Buy government securities
question
Which of the following actions would the Federal Reserve most likely take to rein in spiraling inflation?
answer
Increase reserve requirement
question
Which tool does the Federal Reserve use to control monetary policy through bank borrowing?
answer
Discount rate
question
Which of the following actions would the Federal Reserve most likely take during an economic recession?
answer
Lower discount rate
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