Exam 13: Central Banks and the Federal Reserve System

The Depository Institutions Deregulation and Monetary Control Act of 1980

While legislation enacted in 1998 granted the Bank of Japan new powers and greater autonomy,its critics contend that its independence is

The case for Federal Reserve independence does not include the idea that

An important function of the regional Federal Reserve Banks is

Subject to the approval of the Board of Governors,the decision of choosing the president of a district Federal Reserve Bank is made by

The strongest argument for an independent Federal Reserve rests on the view that subjecting the Fed to more political pressures would impart

Although neither ________ nor the ________ are officially set by the Federal Open Market Committee,decisions concerning these policy tools are effectively made by the committee.

The public's fear of centralized power and distrust of moneyed interests led to the demise of the first two experiments in central banking,otherwise known as

Member commercial banks have purchased stock in their district Fed banks; the dividend paid by that stock is limited by law to ________ percent annually.

Under the European System of Central Banks,the Governing Council is similar in structure to the ________ of the Federal Reserve System.

The central bank which is generally regarded as the most independent in the world because its charter cannot be changed by legislation is the

Under the European System of Central Banks,the Executive Board is similar in structure to the ________ of the Federal Reserve System.

Regarding central bank independence,

Members of the Board of Governors are

The Federal Open Market Committee's "balance of risks" is an assessment of whether,in the future,its primary concern will be

Under the European System of Central Banks,the National Central Banks have the same role as the ________ of the Federal Reserve System.

The political business cycle refers to the phenomenon that just before elections,politicians enact ________ policies.After the elections,the bad effects of these policies (for example,________ )have to be counteracted with ________ policies.

The Federal Reserve Bank of ________ plays a special role in the Federal Reserve System because it houses the open market desk.

Which of the followings is not a current duty of the Board of Governors of the Federal Reserve System?

Each governor on the Board of Governors can serve