EPF Unit 9 Short Answer/Listing

3 things the gov tries to achieve through fiscal policy

price stability, full employment, economic growth

examples of government spending (3)

public works (roads and bridges), subsidies, stimulus checks

2 mandates set by congress on the fed

full employment (eliminate cyclical unemployment), price stability

identify the roles that the federal reserve banks play in each district

store money, process payments

identify 2 purposes of the federal insurance deposit corporation (FDIC)

insures money deposited in banks, monitors banks to make sure they follow regulations

raise reserve requirement

decrease money supply, fewer consumer loans, slow economy to prevent inflation

raise discount rate

decrease money supply, fewer loan to banks, slow economy, prevent inflation

buys bonds

increase money supply, more money for consumers to spend, stimulate economy

raise interest on reserves

decrease money supply, banks loan less, prevent inflation