Monetary Policy
DIRECTIONS: Matching Match each item with the correct statement below.
baby boomers
B. easy money policy
C. fractional reserve system
D. legal reserves
E. member bank reserve (MBR)
F. monetary policy
G. passive fiscal policies
H. quantitative easing (QE)
I. reserve requirement
J. wage-price controls
1. requires financial institutions to set aside a portion of their deposits
2. coins and currency that banks hold in their vaults, plus deposits at the Fed
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3. formula used to compute the amount banks are legally obliged to have on hand
4. deposit kept at the Fed by banks under its authority
5. changes in the money supply that affect the cost and availability of credit
6. associated with an expansion of the money supply
7. laws forbidding firms to change prices without government permission
8. encourages banks to take on more loans to avoid bankruptcy
9. regulatory actions that do not require new actions to go into effect
A 10. people born in the United States during the historically high birthrate period of