click below
click below
Normal Size Small Size show me how
STC Eco Ch16
Question | Answer |
---|---|
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. |