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ECO 372 Week 3 knowledge Check

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1.If you expect interest rates to rise, you will want to be holding

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2.The interest rate is the price paid for the use of a

3.Which of the following do policy makers tend to target when setting monetary policy?

4.If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent, this policy would most likely

5.If banks hold excess reserves whereas before they did not, the money multiplier

6.The process of money multiplier depends on

7.Quantitative easing refers to

8.If the Fed wants an easier monetary policy, it might

9.When the Fed raised the interest rates between 2004 and 2007, the Federal Reserve

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