Exam 15: Tools of Monetary Policy

The quantity of reserves demanded equals

If the banking system has a large amount of reserves,many banks will have excess reserves to lend and the federal funds rate will probably ________; if the level of reserves is low,few banks will have excess reserves to lend and the federal funds rate will probably ________.

Since 1980,________ are subject to reserve requirements.

Everything else held constant,the vertical section of the supply curve of reserves is shortened when the

After 2003,The Federal Reserve usually keeps the discount rate

When good weather speeds the check-clearing process,float tends to ________ causing the Fed to initiate ________ open market ________.

The Federal Reserve ________ pay interest on reserves held on deposit.The European System of Central Banks ________ pay interest on reserves held on deposit.

There are two types of open market operations: ________ open market operations are intended to change the level of reserves and the monetary base,and ________ open market operations are intended to offset movements in other factors that affect the monetary base.

If the Fed wants to temporarily inject reserves into the banking system,it will engage in

The most common type of discount lending that the Fed extends to banks is called

The Federal Open Market Committee makes the Fed's decisions on the purchase or sale of government securities,but these purchases or sales are executed by the Federal Reserve Bank of

The Fed can offset the effects of an increase in float by engaging in

The Fed is considering eliminating

The Federal Reserve has had the authority to vary reserve requirements since the

Everything else held constant,in the market for reserves,when the demand for federal funds intersects the reserve supply curve along the horizontal section,increasing the discount rate

If Treasury deposits at the Fed are predicted to fall,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

In the market for reserves,if the federal funds rate is above the interest rate paid on excess reserves,an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall,everything else held constant.

In the market for reserves,if the federal funds rate is between the discount rate and the interest rate paid on excess reserves,a ________ in the reserve requirement ________ the demand for reserves,raising the federal funds interest rate,everything else held constant.

If float is predicted to decrease because of good weather,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

Everything else held constant,in the market for reserves,when the federal funds rate equals the discount rate,lowering the discount rate