1 The oversees the US banking system 2 are the primary too

1. The __________ oversees the U.S. banking system

2. _________ are the primary tool used by the Federal Reserve to change the money supply

3. An open market ___________ will increase bank reserves, eventually causing the money supply to increase

4. After the Great Depression, _________ was created to protector depositor accounts from bank failures

Solution

1. Federal reserve bank oversees the banking system in US.

2. Discount rate, reserves requirement ratio, open market operations and interest on reserves are main tools to change money supply.

3. An open market purchase will cause money supply to increase

4. FDIC, federal deposit insurance corporation was created to earn trust of people in American banking institution.