Government Exam Review 3

Fiscal policy used to reduce economic growth.

Reserves greater than the required amounts

School of thought based on the idea that demand for goods drives the economy

Supply-side economics believes high taxes have what kind of impact on economic output

Fiscal policy used to encourage economic growth

Situation in which budget expenditures exceed revenues.

Government bond with a maturity date of 26 weeks or less.

How does reducing the reserve requirements affect the money supply?

All funds raised from Treasury Department auctions are deposited at what Fed bank?

Decline in economic activity

How does Easy Money Policy increase the money supply

The research arm of the Federal Reserve

Belief that money supply is the most important factor in macroeconomic performance.

The action the Federal Reserve takes to influence the level of real GDP and inflation

Monetary policy that increases the money supply

Process by which banks record whose account gives up money and whose account receives money

Written document estimating the Federal Governments revenue and authorize spending for year.

Government bond that is issued with a term of 30 years.

Expansionary policy can be used to prevent or get out of a....

A fiscal year goes from when to when?

How many Federal Reserve banks are in each district?

The higher interest rates are, what happens to the money supply?

Committee that makes key decisions about interest rates and growth of U.S. money supply

What event challenged the beliefs that drive classical economics?

What does the chairman of the Board of Governors act as a spokesperson for?

What are the 2 parts of the budget?

Government bond with a term of 2 to 10 years

Situation in which budget revenues exceed expenditures

The Federal Reserve maintains a checking account for.....

School of thought based on the idea that supply of goods drives the economy.

Rate the Federal Reserve charges for loans to commercial banks.

12 banking districts created by the Federal Reserve Act

7-member board that oversees the Federal Reserve System

School of thought that uses demand-side theory as basis for encouraging government action

British economist who created Keynesian Economics

Who issues coins as currency in the U.S.?

Total amount of money the Federal Government owes to bondholders.

Interest rate banks charge each other for loans

School of thought based on the idea that free markets regulate themselves.

Total assets minus total liabilities

Any 12-month period used for budgeting purposes.

The Federal Reserve will monitor banks _______ as part of their supervising roles

How does increasing the reserve requirement affect the money supply.

Who issues paper currency in the U.S.?

Process by which money enters into circulation

General increase in prices and fall in the purchasing value of money.

Who sets the Required Reserve Ratio (RRR)?

Ratio of reserves to deposits required of banks by the Federal Reserve

Which banks are required to join the Federal Reserve System

What does the Federal Reserve use reserves for?

Who appoints members to the Board of Governors?