Title: QUIZ: The Federal Reserve in the Great Depression -- The Federal Reserve and You
Course: Kelly's Copy-Export Course > Section: The Federal Reserve in the Great Depression -- The Federal Reserve and You

Q: How did the Federal Reserve (the Fed) contribute to the Great Depression?
- The Fed loosened monetary policy, and prices rose.
- The Fed kept monetary policy tight, and did not keep prices stable.
- The Fed kept monetary policy tight, and prices rose.
- The Fed loosened monetary policy, and unemployment dropped.
A: The Fed kept monetary policy tight, and did not keep prices stable.

Q: What is deflation?
- When prices are rising.
- When prices are staying the same.
- When prices are falling.
- When some prices are falling and some prices are rising.
A: When prices are falling.

Q: What happened to banks during the lead up to the Great Depression?
- Many banks failed, and people lost their money.
- The Federal Reserve made sure that banks stayed open.
- Many banks failed, but deposit insurance made sure people did not lose their money.
- Many banks failed, but the Federal Reserve made sure people kept their money.
A: Many banks failed, and people lost their money.