Question 1

What is included in the public statement released by the FOMC following the conclusion of its meeting?

Accepted Answer

The FOMC summarizes its view of the balance or risks between higher inflation and a weakening economy.

Question 2

In 2010,doubts were raised about the debt of all of the following countries EXCEPT

Accepted Answer

A)  Ireland. 
B)  Greece. 
C)  Poland. 
D)  Portugal. 
A)  Ireland. 
B)  Greece. 
C)  Poland. 
D)  Portugal. C

Question 3

During the financial crisis of 2007-2009,Fed Chairman Ben Bernanke relied on an informal group of three advisors to help make quick decisions on policy actions.Which of the following was NOT one of those advisors?

Accepted Answer

A)  Board of Governors member Donald Kohn 
B)  New York District Bank president Timothy Geithner 
C)  Board of Governors member Kevin Warsh 
D)  Treasury Secretary Henry Paulson 
A)  Board of Governors member Donald Kohn 
B)  New York District Bank president Timothy Geithner 
C)  Board of Governors member Kevin Warsh 
D)  Treasury Secretary Henry Paulson D

Question 4

Which of the following officially ended the cooperation between the Treasury and the Fed that had taken place during World War II?

Accepted Answer

A)  Truman Doctrine 
B)  Federal Reserve Act of 1951 
C)  Dodd-Frank Act 
D)  Treasury-Federal Reserve Accord 
A)  Truman Doctrine 
B)  Federal Reserve Act of 1951 
C)  Dodd-Frank Act 
D)  Treasury-Federal Reserve Accord

Question 5

Which of the following was NOT advocated by former Texas Congressman Ron Paul?

Accepted Answer

A)  abolishing the Fed 
B)  making the Fed Board of Governors lifetime appointments 
C)  returning to the gold standard 
D)  100% reserve banking 
A)  abolishing the Fed 
B)  making the Fed Board of Governors lifetime appointments 
C)  returning to the gold standard 
D)  100% reserve banking

Question 6

Apart from the United States,in countries where central bank board members serve fixed terms of office

Accepted Answer

A)  none have terms as long as fourteen years. 
B)  many serve for life or good behavior. 
C)  all have terms longer than fourteen years. 
D)  the head of the central bank rarely has a term longer than one year. 
A)  none have terms as long as fourteen years. 
B)  many serve for life or good behavior. 
C)  all have terms longer than fourteen years. 
D)  the head of the central bank rarely has a term longer than one year.

Question 7

Most of the Fed's earnings come from

Accepted Answer

A)  fees charged to financial institutions for check clearing. 
B)  interest on the securities it holds. 
C)  interest on discount loans. 
D)  congressional appropriations. 
A)  fees charged to financial institutions for check clearing. 
B)  interest on the securities it holds. 
C)  interest on discount loans. 
D)  congressional appropriations.

Question 8

Which of the following is NOT an activity carried out by Federal Reserve district banks?

Accepted Answer

A)  open market operations 
B)  issuing new Federal Reserve Notes 
C)  making discount loans 
D)  examining state member banks 
A)  open market operations 
B)  issuing new Federal Reserve Notes 
C)  making discount loans 
D)  examining state member banks

Question 9

Federal Reserve district banks perform all of the following roles EXCEPT

Accepted Answer

A)  managing check clearing in the payments system. 
B)  performing regulatory functions. 
C)  setting the federal funds rate. 
D)  managing currency in circulation by issuing new Federal Reserve notes. 
A)  managing check clearing in the payments system. 
B)  performing regulatory functions. 
C)  setting the federal funds rate. 
D)  managing currency in circulation by issuing new Federal Reserve notes.

Question 10

Which of the following statements is correct?

Accepted Answer

A)  The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money. 
B)  The Fed is dependent on the annual appropriations it receives from Congress. 
C)  The Fed's profits are substantial, even when compared to the largest U.S. corporations. 
D)  At one time the Fed made substantial profits, but falling interest rates have greatly reduced them. 
A)  The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money. 
B)  The Fed is dependent on the annual appropriations it receives from Congress. 
C)  The Fed's profits are substantial, even when compared to the largest U.S. corporations. 
D)  At one time the Fed made substantial profits, but falling interest rates have greatly reduced them.

Question 11

Under the Federal Reserve Act,which banks must be members of the Federal Reserve System?

Accepted Answer

A)  all commercial banks 
B)  national banks 
C)  state banks 
D)  all banks with capital in excess of $100 million 
A)  all commercial banks 
B)  national banks 
C)  state banks 
D)  all banks with capital in excess of $100 million

Question 12

The Federal Reserve Act of 1913 made who the chairman of the Federal Reserve Board?

Accepted Answer

A)  the vice-president of the United States 
B)  the secretary of the Treasury 
C)  the comptroller of the currency 
D)  the chancellor of the Exchequer 
A)  the vice-president of the United States 
B)  the secretary of the Treasury 
C)  the comptroller of the currency 
D)  the chancellor of the Exchequer

Question 13

The Fed does NOT have to go through the normal congressional appropriations process because

Accepted Answer

A)  its expenses are very small. 
B)  it was given enough funds at the time of its founding to provide for its expenses indefinitely. 
C)  it is self financing. 
D)  it is not part of the legislative branch of the federal government. 
A)  its expenses are very small. 
B)  it was given enough funds at the time of its founding to provide for its expenses indefinitely. 
C)  it is self financing. 
D)  it is not part of the legislative branch of the federal government.

Question 14

How did the Fed peg interest rates during World War II?

Accepted Answer

A)  by setting a low federal funds rate 
B)  by agreeing to purchase any bonds that were not purchased by private investors 
C)  through extensive use of discount loans 
D)  through nationalization of the banking system 
A)  by setting a low federal funds rate 
B)  by agreeing to purchase any bonds that were not purchased by private investors 
C)  through extensive use of discount loans 
D)  through nationalization of the banking system

Question 15

The Federal Reserve Act of 1913

Accepted Answer

A)  specified both the boundaries and city locations for the district banks. 
B)  specified the boundaries, but not the city locations, for the district banks. 
C)  specified the city locations, but not the boundaries, for the district banks. 
D)  specified neither the boundaries nor city locations for the district banks. 
A)  specified both the boundaries and city locations for the district banks. 
B)  specified the boundaries, but not the city locations, for the district banks. 
C)  specified the city locations, but not the boundaries, for the district banks. 
D)  specified neither the boundaries nor city locations for the district banks.

Question 16

Which of the following is the mandate of the European Central Bank?

Accepted Answer

A)  high economic growth 
B)  price stability 
C)  low unemployment 
D)  a fixed exchange rate 
A)  high economic growth 
B)  price stability 
C)  low unemployment 
D)  a fixed exchange rate

Question 17

Which of the following cities contains a Federal Reserve bank?

Accepted Answer

A)  Pittsburgh 
B)  Los Angeles 
C)  Seattle 
D)  Dallas 
A)  Pittsburgh 
B)  Los Angeles 
C)  Seattle 
D)  Dallas

Question 18

Which of the following does NOT serve on the Governing Council of the European Central Bank?

Accepted Answer

A)  governors of the national central banks 
B)  members of the executive board 
C)  finance ministers of each country 
D)  chair of the executive board 
A)  governors of the national central banks 
B)  members of the executive board 
C)  finance ministers of each country 
D)  chair of the executive board

Question 19

Which of the following cities does NOT contain a Federal Reserve bank?

Accepted Answer

A)  Cleveland 
B)  Dallas 
C)  Los Angeles 
D)  Boston 
A)  Cleveland 
B)  Dallas 
C)  Los Angeles 
D)  Boston

Question 20

How does the Fed reach its target for the federal funds rate?

Accepted Answer

A)  by changing the discount rate 
B)  by changing reserve requirements 
C)  by buying and selling Treasury securities 
D)  by directly setting the federal funds rate 
A)  by changing the discount rate 
B)  by changing reserve requirements 
C)  by buying and selling Treasury securities 
D)  by directly setting the federal funds rate

What is included in the public statement released by the FOMC following the conclusion of its meeting?

In 2010,doubts were raised about the debt of all of the following countries EXCEPT

During the financial crisis of 2007-2009,Fed Chairman Ben Bernanke relied on an informal group of three advisors to help make quick decisions on policy actions.Which of the following was NOT one of those advisors?

Which of the following officially ended the cooperation between the Treasury and the Fed that had taken place during World War II?

Which of the following was NOT advocated by former Texas Congressman Ron Paul?

Apart from the United States,in countries where central bank board members serve fixed terms of office

Most of the Fed's earnings come from

Which of the following is NOT an activity carried out by Federal Reserve district banks?

Federal Reserve district banks perform all of the following roles EXCEPT

Which of the following statements is correct?

Under the Federal Reserve Act,which banks must be members of the Federal Reserve System?

The Federal Reserve Act of 1913 made who the chairman of the Federal Reserve Board?

The Fed does NOT have to go through the normal congressional appropriations process because

How did the Fed peg interest rates during World War II?

The Federal Reserve Act of 1913

Which of the following is the mandate of the European Central Bank?

Which of the following cities contains a Federal Reserve bank?

Which of the following does NOT serve on the Governing Council of the European Central Bank?

Which of the following cities does NOT contain a Federal Reserve bank?

How does the Fed reach its target for the federal funds rate?

Introducing Money and the Financial System

Money and the Payments System

Interest Rates and Rates of Return

Determining Interest Rates

The Risk Structure and Term Structure of Interest Rates

The Stock Market, information, and Financial Market Efficiency

Derivatives and Derivative Markets

The Market for Foreign Exchange

Transactions Costs, asymmetric Information, and the Structure of the Financial System

The Economics of Banking

Beyond Commercial Banks: Shadow Banks and Nonbank Financial Institutions

Financial Crises and Financial Regulation

The Federal Reserves Balance Sheet and the Money Supply Process

Monetary Policy

The International Financial System and Monetary Policy

Monetary Theory I- the Aggregate Demand and Aggregate Supply Model

Monetary Theory Ii: the Is-Mp Model

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Exam 13: The Federal Reserve and Central Banking

What is included in the public statement released by the FOMC following the conclusion of its meeting?

In 2010,doubts were raised about the debt of all of the following countries EXCEPT

During the financial crisis of 2007-2009,Fed Chairman Ben Bernanke relied on an informal group of three advisors to help make quick decisions on policy actions.Which of the following was NOT one of those advisors?

Which of the following officially ended the cooperation between the Treasury and the Fed that had taken place during World War II?

Which of the following was NOT advocated by former Texas Congressman Ron Paul?

Apart from the United States,in countries where central bank board members serve fixed terms of office

Most of the Fed's earnings come from

Which of the following is NOT an activity carried out by Federal Reserve district banks?

Federal Reserve district banks perform all of the following roles EXCEPT

Which of the following statements is correct?

Under the Federal Reserve Act,which banks must be members of the Federal Reserve System?

The Federal Reserve Act of 1913 made who the chairman of the Federal Reserve Board?

The Fed does NOT have to go through the normal congressional appropriations process because

How did the Fed peg interest rates during World War II?

The Federal Reserve Act of 1913

Which of the following is the mandate of the European Central Bank?

Which of the following cities contains a Federal Reserve bank?

Which of the following does NOT serve on the Governing Council of the European Central Bank?

Which of the following cities does NOT contain a Federal Reserve bank?

How does the Fed reach its target for the federal funds rate?

Introducing Money and the Financial System

Money and the Payments System

Interest Rates and Rates of Return

Determining Interest Rates

The Risk Structure and Term Structure of Interest Rates

The Stock Market, information, and Financial Market Efficiency

Derivatives and Derivative Markets

The Market for Foreign Exchange

Transactions Costs, asymmetric Information, and the Structure of the Financial System

The Economics of Banking

Beyond Commercial Banks: Shadow Banks and Nonbank Financial Institutions

Financial Crises and Financial Regulation

The Federal Reserves Balance Sheet and the Money Supply Process

Monetary Policy

The International Financial System and Monetary Policy

Monetary Theory I- the Aggregate Demand and Aggregate Supply Model

Monetary Theory Ii: the Is-Mp Model

Filters