Chapter 16 questions
Chapter 16: The Federal Reserve and Monetary Policy
Please read the sections before you answer the questions assigned.
16(1)
1. Figure 16.1 (416), What percentage of banks are in the federal reserve system, and what percentage of bank deposits do they control?
2. Figure 16:2 (417) Identify the 12 Federal Reserve Bank cities.
3. What is the point of the fast fact (417)?
4. Answer questions 1-5 (odd/even) page 418
16(2)
1. Whose statue do you think is on the north side of the Dept. of Treasury( 420)?
2. Figure 16.3 (421) What role does the Fed have in cashing checks?
3. Figure 16.4 (423) What happens to the money demand when interest rates increase?
4. Answer questions 1-6 (423) odd/even.
Read the biography of Alan Greenspan (424) bullet three facts about his life. Answer question 2.
16(3)
1. Figure 16.5 (426) How do banks create money?
2. Figure 16.6 (427) What is the reserve ratio requirement?How can the Fed expand the money supply using this tool?
3. Figure 16.7 (428) What is the discount rate? How can the Fed expand the money supply using this tool?
4. Figure 16.8 (428) What are open market operations? How can the Fed expand the money supply using this tool?
5. Answer questions 1-8 (odd/even) page 429.
16(4)
1. Figure 16.10 (432) What are the effects of proper and improper timing of fed monetary
policies?
2. Answer questions 1-6 (odd/even) on page 434.
Please read the sections before you answer the questions assigned.
16(1)
1. Figure 16.1 (416), What percentage of banks are in the federal reserve system, and what percentage of bank deposits do they control?
2. Figure 16:2 (417) Identify the 12 Federal Reserve Bank cities.
3. What is the point of the fast fact (417)?
4. Answer questions 1-5 (odd/even) page 418
16(2)
1. Whose statue do you think is on the north side of the Dept. of Treasury( 420)?
2. Figure 16.3 (421) What role does the Fed have in cashing checks?
3. Figure 16.4 (423) What happens to the money demand when interest rates increase?
4. Answer questions 1-6 (423) odd/even.
Read the biography of Alan Greenspan (424) bullet three facts about his life. Answer question 2.
16(3)
1. Figure 16.5 (426) How do banks create money?
2. Figure 16.6 (427) What is the reserve ratio requirement?How can the Fed expand the money supply using this tool?
3. Figure 16.7 (428) What is the discount rate? How can the Fed expand the money supply using this tool?
4. Figure 16.8 (428) What are open market operations? How can the Fed expand the money supply using this tool?
5. Answer questions 1-8 (odd/even) page 429.
16(4)
1. Figure 16.10 (432) What are the effects of proper and improper timing of fed monetary
policies?
2. Answer questions 1-6 (odd/even) on page 434.
