Exam 4: Federal Reserve System

Fannie Mae was created to support the financial markets by purchasing home mortgages and automobile loans from banks so that the proceeds could be lent to other borrowers.

The Fed Board of Governors is composed of seven members who are appointed for a term of 12 years.

Each member of the Fed Board of Governors is appointed for a term of

All of the Chairmen of the Fed Board of Governors have been male.

Open market operations are similar to discount operations in that they increase or decrease bank reserves at the initiative of the Fed.

Created to issue its own debt securities to obtain funds that are invested in mortgages made to low to moderate income home purchasers

Which of the following is not a responsibility of the Board of Governors?

The seven members of the Federal Reserve Board of Governors are responsible for the establishment of monetary policy.

This act requires disclosure of information about the services and costs involved at the time of settlement when property is transferred from seller to buyer.

Created to support the financial markets by purchasing home mortgages from banks so that the proceeds could be lent to other borrowers,

____________________________ prohibits discrimination in the granting of credit on the basis of sex, marital status, race, color, religion, national origin, age, or receipt of public assistance.

The seven-member board of the Federal Reserve that sets monetary policy is called

The European Central Bank (ECB) conducts monetary policy for Britain.

Three essential needs of a well-operating financial system include all of the following except

Although not provided for in the original organization of the Fed, open-market operations have become the most important and effective means of monetary control.

History generally supports the contention that under the guidance of Paul Volcker, a (n) ____________ Fed policy brought down the double-digit inflation of the 1970s and the early 1980s, and the Federal Open Market Committee consistently responded to his leadership.

Banks are required by the Fed to hold reserves equal to a part of their deposits as part of the fractional reserve system of the U.S. banking system.

The Fed Board of Governors

Approximately __________ of the nation's commercial banks are members of the Fed.

The Truth in Lending Act