Pretest on Monetary Policy
Click on the correct answer
1
The "Fed" is:
A new bank
the Federal Reserve System of the US (central bank)
A new football team
the machine that prints money
2
For economists the price of money is called:
the lottery
the discount rate
the interest rate
the prime rate
3
One of the tools of Monetary Policy is:
raising taxes
credit cards
changes in the discount rate
changes in the prime rate
4
When the "Fed" raises the discount rate, the economy should:
accelerate even faster
slow down
create more jobs
have a higher rate of inflation in the future