The Story of Monetary Policy Honors Economics Name:_________________________ 1. What is Monetary Policy? 2. What is money? 3. What is credit? 4. How does inflation slow economic growth? 5. What is hyperinflation? 6. What is the “Board of Governors”, how many people are on it, and how do they get on it? 7. How long is their term in office? 8. How is the Board protected from politics? 9. How many Federal Reserve Banks are there? What District are we in? 10. What is the FOMC? 11. Which of the Federal Reserve Banks is responsible for acting out the actions of the FOMC? 12. What are “Open Market Operations”? 13. When would the government buy securities? 14. During what times of the year are bank reserves generally very low? 15. What is a reserve requirement? 16. How does the Fed create money? 17. What is the discount rate? 18. What products does the Fed look at to determine if inflation might be coming? 19. During times of high interest rates, what happens to the value of the dollar?