C719 Word Scramble
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| Question | Answer |
| For a bank: Loans to public & Reserves | Assets |
| For a bank: Deposits & Loans from Fed | Liabilities |
| The fraction of deposits that banks hold as reserves | Required Reserves |
| The fraction of deposits that a bank can lend out | Excess Reserves |
| When incomes rise, the interest rate will... | Rise |
| When the price level falls, the interest rate will... | Fall |
| When the supply of money increases, the interest rate will... | Fall |
| When the supply of money decreases, the interest rate will... | Rise |
| The interest rate banks charge each other. | Federal Funds Rate |
| The interest rate the Fed charges banks. | Discount Rate |
| Main tool of the Federal Reserve | Open Market Operations |
| When the Fed buys securities, the money supply... | Increases |
| When the Fed sells securities, the money supply... | Decreases |
| Treasury bonds are an example of... | Securities |
| When the Fed lowers the required reserve ratio, the money supply... | Increases |
| When the Fed raises the required reserve ratio, the money supply... | Decreases |
| When the Fed lowers the discount rate, the money supply... | Increases |
| When the Fed raises the discount rate, the money supply... | Decreases |
Created by:
chawk69
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