Question

I NEED HELP (ASAP) FOR ECONOMICS!!! REAL ANSWERS ONLY NO GUESS ANSWERS!! 50 points

Answer 1

Answer:

1. B
2. A
3. B
4. A
5. A

Explanation:

1. The monetary policy is one of the jobs of the central bank in which they either increase or decrease the money supply to grow or slow the economy.  
2. Since the Board of the Governers has a very significant role in      developing the monetary Policy that is why they are appointed by The President.
3. There are 12 federal reserve districts: Boston, Newyork, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco.
4. The Treasury Department is responsible for printing the paper currency of the U.S. which is referred to as Dollars.
5. The main function of a bank examiner is to oversee that banks are operating under the legal framework which is provided to them by the Government.

Monetary Policy further Explained:

There are two types of Monetary Policies by which Central Bank can manipulate the Interest Rate (indirectly as they don’t have direct authority to change the interest rate of commercial banks) and consequently impacting the overall economy:

• Expansionary Monetary Policy: The main idea of this policy is to speed up the economy, The Central Bank increases the money supply which results in a lot of money in banks and borrowers are looking for the best deal so because of the competition between the banks they have to lower the Interest rate.

• Contractionary Monetary Policies: The main ideas here is to slow the economy, The Central Bank decreases the money supply due to which banks have less money and the less competition which results in high-interest rates which then affects the borrower’s spending.  

Monetary Policy Objectives:

• Keep the economy growing overtime which is measured by GDP.
• Limit unemployment which is measured by Unemployment rate.
• Keep prices stable which is measured by Inflation Rate.

   

Answer 2

Answer:

1. C

2. D

3. C

4. A

5. A

Explanation: