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STC Eco Ch16

QuestionAnswer
Monetary Policy: A central bank changing of the money supply to influence interest rates and assist the economy in achieving price-level stability, full employment, and economic growth.
Open-market operations: The buying and selling of U.S. government securities by the Fed for the purpose of carrying out monetary policy.
Discount rate: The discount rate the Federal reserve Banks charge on the loans they make to commercial banks and thrifts.
Easy Money policy: Fed actions designed to increase the money supply lower interest rates, and expand real GDP.
Tight money policy: Fed actions to reduce (or restrict) the growth of the nation’s money supply, increase interest rates,and restrain inflation.
Created by: vjambriz