1-10 Monetary Policy & Federal Reserve

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Across
  1. 2. Fiscal policy is better for a ___ ___ , like the 2008 crisis.
  2. 5. Fed changes the money supply by buying/selling ___ ___ operations: short term government bonds.
  3. 6. Fed changes the money supply by changing the ___ ___ : the amount of money kept in a bank.
  4. 8. An ___ ___ is the price of borrowing money. This percentage allows the bank to make a profit off loans.
  5. 10. ___ monetary policy means increasing money supply, decreasing interest rates, speeding up the economy.
  6. 12. The Fed alters the ___ ___ to control interest rates. Increasing this creates completion, so banks lower rates to attract borrowers.
  7. 16. Q.E. raised worries about ___ . When you add made-up money to the economy, prices can rise.
  8. 17. ___ Easing means the Fed increases stimulus by buying long-term assets from banks: home loans or Mortgage Backed Securities.
  9. 18. ___ monetary policy means decreasing money supply, increasing interest rates, slowing the economy.
  10. 19. Monetary Policy is better for garden variety ___ , enacted quickly by experts who focus on the economy.
  11. 20. Great Depression banks failed because they lacked ___ ___ , or cash, for depositors withdrawing money. .
Down
  1. 1. Fed changes the money supply by changing the ___ ___ : interest rate charged to commercial banks.
  2. 3. A ___ in money supply means banks will raise interest rates in response to the limited supply of credit.
  3. 4. Since 2008 crisis, reserves have skyrocketed & money never got into the system. Some say it's ___ lending regulations.
  4. 7. The central bank of the U.S. is called the ___ ___ , or the Fed.
  5. 9. One of the duties of the federal reserve is to supply money to smaller banks, to stop ___ ___.
  6. 11. ___ ___ is one of the duties of the federal reserve, making the economy move slower or faster.
  7. 13. When interest rates are ___ , it is easier to pay back loans, so we borrow more. When interest rates are ___ , the opposite is true.
  8. 14. U.S. isolated its central bank from ___ who might be shortsighted, so monetary policy generally works.
  9. 15. When customers deposit money, they need to feel ___ they’ll get it back. Or you have bank runs.