Ch+16.1

Ch 16.1 Monetary policy and Questions # 1-6

__Monetary Policy__
 * refers to the actions the fed takes to influence the level of real GDP and the rate of inflation in the economy

Questions #1-6
 * 1) 7 members are appointed to the board of governers of the federal resevre
 * 2) monetary policiy refers to the actions the fed takes to influence the level of real GDP and the rate of inflation in the economy
 * 3) federal reserve is made up of 12 districts one federal reserve bank is located in each of the 12 states
 * 4) the federal advisory council FAC collects info about each district and reports to the bpard of governers about economic decisions
 * 5) THe FOMC makes key decisions about interest rates and the growth of the US money supply