Federal Reserve Districts, Decision-Making Bodies, and Tools of Policy

2. 100 Points • How many Federal Reserve Districts are there in the United States?

3. Answer = 12!!

4. Ans: • Which Federal Reserve District is Georgia in?

5. Answer = District 6

6. Ans: • Which decision making body of the Federal Reserve decides when to increase the discount rate and the reserve requirement?

7. Return • The Board of Governors

8. 400 Points • Who makes up the Federal Open Market Committee, who always serves on the board and how many years do they serve?

9. Return • The 7 Board of Governors • 5 of the District Presidents • One of the 5 is the President of the New York Federal Reserve Bank • They serve 14 year terms

10. Answer: • What are the three tools of monetary policy?

11. Answer – 100 Points • Open Market Operations • The Discount Rate • The Reserve Requirement

12. Answer • If the economy is in the contractionary phase of the business cycle. How would the Federal Reserve use Open Market Operations?

13. Answer 200 Points • The Federal Reserve would buy bonds.

14. 300 Points - Answer • What is the Reserve Requirement?

15. Answer – 300 Points • The percentage of checkable deposits the Federal Reserve Banks requires banks to hold in reserve.

16. 400 Points - Answer • What is the definition of the Discount Rate?

17. Answer – 400 Points • The interest rate the Federal Reserve charges banks when banks borrow money from the Federal Reserve.

18. 100 Points • What are the tools of Fiscal Policy?

19. Answer • Taxes and Government Spending

20. 200 Points • Who is responsible for Fiscal Policy?

21. Answer 200 Points • Congress

22. Answer • If Congress was concerned about the unemployment rate getting too high, what Fiscal Policy could Congress implement?

23. Answer 300 Points • Congress could decrease taxes or increase Government Spending

24. Answer 400 Points • If Inflation is a Fiscal Policy concern, using the tools of Fiscal Policy, what steps could be taken?

25. Answer – 400 Points • Congress could Increase Taxes or Decrease Spending.

26. Taxes 100 Points • What is an example of Progressive Tax

27. Taxes 100 Points Answer • Federal Income Tax

28. Taxes 200 Points • What is an example of Regressive Tax

29. Taxes 200 Points Answer • Sales Tax

30. Taxes 300 Points • What is an example of Proportional Tax?

31. Taxes 200 Points Answer • Property Tax • Social Security Withholding Tax • Medicare Withholding Tax

32. Taxes – 300 Points • What is the definition of Regressive Tax

33. Taxes 300 Points - Answer • A Tax that places a greater burden on those with low incomes than those with higher incomes.

34. Taxes 400 Points • What taxes are required to be withheld from someone’s paycheck?

35. Taxes 400 Answer • Medicare Tax • Social Security Tax • Federal Income Tax • State Income Tax (in most states) • FICA – Federal Insurance Contributions Act