Federal Reserve Easy Money Policy
Graphic indicating Federal Reserve Easy Money Policy. Easy money policies lead to an increase in what area?
1. Which of the following results should be included where the question mark appears in the illustration?
a. interest rates
b. the reserve requirement
c. inflation
d. unemployment
2. Which of the following is correct regarding the structure of the Federal Reserve?
a. The Federal Reserve has a Board of Governors that helps supervise and regulate the Fed.
b. The Federal Reserve is completely free of any governmental control
c. The Federal Reserve has the power to pass taxes.
d. The Federal Reserve is owned by the U.S. government.
Graphic of Federal Reserve Tight Money Policy. Tight money policy leads to an increase in what area of the economy?
3. Which of the following results should be included where the question mark appears in the illustration?
a. unemployment
b. production
c. inflation
d. consumer spending