Fill in a table like the one below to list methods the Fed can use to change the money

Write a paragraph or two explaining the role of the Federal Reserve in the U.S. economy. Use all of the following terms. Federal Reserve monetary policy check clearing loose money policy tight money policy reserve requirement discount rate federal funds rate prime rate open-market operations

Choose the letter of the term that best completes each sentence. a. assist b. network c. function d. portion e. precise f. contract a. assist b. network c. function d. portion e. precise f. contract Banks must keep records of every account and transaction.

Choose the letter of the term that best completes each sentence. a. assist b. network c. function d. portion e. precise f. contract a. assist b. network c. function d. portion e. precise f. contract One of the Fed is check clearing.

Choose the letter of the term that best completes each sentence. a. assist b. network c. function d. portion e. precise f. contract a. assist b. network c. function d. portion e. precise f. contract The Fed can banks by holding excess reserves for them.

Choose the letter of the term that best completes each sentence. a. assist b. network c. function d. portion e. precise f. contract a. assist b. network c. function d. portion e. precise f. contract Banks operate as part of a linked system, or .

Choose the letter of the term that best completes each sentence. a. assist b. network c. function d. portion e. precise f. contract a. assist b. network c. function d. portion e. precise f. contract Banks can use the of deposits that do not need to be reserved to make more loans.

Choose the letter of the term that best completes each sentence. a. assist b. network c. function d. portion e. precise f. contract a. assist b. network c. function d. portion e. precise f. contract If the Fed raises the federal funds rate, economic activity may , or shrink.

What does the Board of Governors do within the Fed?

How many Federal Reserve banks and branches are there?

What are the main functions of the Federal Reserve?

What are the two basic types of monetary policies?

In a 10 percent fractional reserve banking system, what happens to the money supply when the Fed injects $100 of new money into the American economy?

Why do banks have to keep money in reserve accounts?

Fill in a table like the one below to list methods the Fed can use to change the money supply, and explain how these methods can be used to increase or decrease the money supply.

Why do some of the Feds critics think the Fed should not engage in manipulating the nations money supply?

Look at Figure 15.1 on page 393. Use the map to answer the following questions. a. In what federal district do you live? b. What is the Federal Reserve Bank city of district 9? c. What is the Federal Reserve Bank city of district 4? What are district 4s branch cities? d. What are the branch cities of district 11? e. To what district bank would checks written in Hawaii go first? f. Imagine that the population of district 12 grows very quickly and the district bank has trouble keeping up with the demand for services there. How might the Fed solve this problem? g. Suppose that there are suddenly many large withdrawals from banks in district 6, and these banks do not have enough in reserve to cover these withdrawals. How might the Fed solve this problem?

How do you think the Fed would operate differently if it were under the control of the executive branch?

What is the advantage for banks to be members of the Federal Reserve today? How does this differ from the past?

Create a flowchart like the one below to show how fractional reserve banking increases the money supply.

Study the cartoon on the right, and then answer the following questions. a. Who is the man holding the door, and what is his job? b. What does the dragon represent? c. Why does the man look unhappy about his welcome?