Question 1

Which of the following men has NOT served as Chairman of the Board of Governors?

Accepted Answer

A)  Milton Friedman 
B)  Arthur Burns 
C)  Paul Volcker 
D)  Alan Greenspan 
A)  Milton Friedman 
B)  Arthur Burns 
C)  Paul Volcker 
D)  Alan Greenspan

Question 2

Who are the members of the Financial Stability Oversight Council?

Accepted Answer

Members of the Financial Stabi

Question 3

The main argument in favor of Fed independence is that

Accepted Answer

A)  interest rates would probably be lower if Congress controlled the Fed, thus hurting savers. 
B)  the Constitution requires it. 
C)  monetary policy is too important and too technical to be determined in the political arena. 
D)  congressional control of the Fed was tried during the 1960s and did not work well. 
A)  interest rates would probably be lower if Congress controlled the Fed, thus hurting savers. 
B)  the Constitution requires it. 
C)  monetary policy is too important and too technical to be determined in the political arena. 
D)  congressional control of the Fed was tried during the 1960s and did not work well.

Question 4

Which groups were opposed to the Bank of the United States?

Accepted Answer

A)  northeastern industrial interests 
B)  northeastern financial interests 
C)  southern and western agrarian and small-business interests 
D)  exporters 
A)  northeastern industrial interests 
B)  northeastern financial interests 
C)  southern and western agrarian and small-business interests 
D)  exporters

Question 5

Who is considered to wield the most power in the Federal Reserve System?

Accepted Answer

A)  the Fed chair 
B)  member banks 
C)  the Treasury Secretary 
D)  the president of the Federal Reserve Bank of New York 
A)  the Fed chair 
B)  member banks 
C)  the Treasury Secretary 
D)  the president of the Federal Reserve Bank of New York

Question 6

Who had served as a de facto lender of last resort during the 1907 panic?

Accepted Answer

A)  The U.S. Treasury 
B)  J. P. Morgan 
C)  Henry Ford 
D)  John D. Rockefeller 
A)  The U.S. Treasury 
B)  J. P. Morgan 
C)  Henry Ford 
D)  John D. Rockefeller

Question 7

In 1976,Congress passed legislation which requires most federal government agencies to give public notice before a meeting.This legislation is the

Accepted Answer

A)  Increased Transparency Act. 
B)  No-Stone-Unturned Act. 
C)  Government in the Sunshine Act. 
D)  Dodd-Frank Act. 
A)  Increased Transparency Act. 
B)  No-Stone-Unturned Act. 
C)  Government in the Sunshine Act. 
D)  Dodd-Frank Act.

Question 8

How do individuals become members of the Board of Governors?

Accepted Answer

They are appointed b

Question 9

When did the Federal Reserve Act become law?

Accepted Answer

A)  1836 
B)  1913 
C)  1936 
D)  1951 
A)  1836 
B)  1913 
C)  1936 
D)  1951

Question 10

The political business cycle theory predicts that

Accepted Answer

A)  the Fed acts to promote the interests of the general public. 
B)  the Fed acts to stimulate economic activity before an election. 
C)  the president's appointments to the Board of Governors will usually be politicians. 
D)  political factors over which the Fed has no control are most important in explaining the business cycle. 
A)  the Fed acts to promote the interests of the general public. 
B)  the Fed acts to stimulate economic activity before an election. 
C)  the president's appointments to the Board of Governors will usually be politicians. 
D)  political factors over which the Fed has no control are most important in explaining the business cycle.

Question 11

All of the following help make the Fed independent of the political process EXCEPT

Accepted Answer

A)  financial independence. 
B)  the chair of the Fed receives a lifetime appointment. 
C)  board members receive a long, nonrenewable appointment. 
D)  board members' terms expire at different times, reducing the possible number of appointees by any one president. 
A)  financial independence. 
B)  the chair of the Fed receives a lifetime appointment. 
C)  board members receive a long, nonrenewable appointment. 
D)  board members' terms expire at different times, reducing the possible number of appointees by any one president.

Question 12

The regional Federal Reserve Banks are owned by

Accepted Answer

A)  the federal government. 
B)  the Federal Reserve System. 
C)  the state governments covered by each bank's region. 
D)  private banks which are part of the Federal Reserve System in each region. 
A)  the federal government. 
B)  the Federal Reserve System. 
C)  the state governments covered by each bank's region. 
D)  private banks which are part of the Federal Reserve System in each region.

Question 13

The principal-agent view of Fed motivation predicts that the Fed acts

Accepted Answer

A)  to promote the interests of the general public. 
B)  to promote the interests of the Fed's principal-the President of the United States. 
C)  in order to increase its power, influence, and prestige. 
D)  in order to make sure its agents-commercial banks-carry out its wishes. 
A)  to promote the interests of the general public. 
B)  to promote the interests of the Fed's principal-the President of the United States. 
C)  in order to increase its power, influence, and prestige. 
D)  in order to make sure its agents-commercial banks-carry out its wishes.

Question 14

What percentage of all commercial banks in the United States belong to the Federal Reserve System?

Accepted Answer

A)  5% 
B)  34% 
C)  75% 
D)  90% 
A)  5% 
B)  34% 
C)  75% 
D)  90%

Question 15

Who sets the inflation target for the Bank of England?

Accepted Answer

A)  Prime Minister 
B)  chancellor of the Exchequer 
C)  head of the monetary policy committee 
D)  majority vote of the monetary policy committee 
A)  Prime Minister 
B)  chancellor of the Exchequer 
C)  head of the monetary policy committee 
D)  majority vote of the monetary policy committee

Question 16

Members of the Board of Governors are

Accepted Answer

A)  elected by the district bank presidents. 
B)  appointed by the President of the United States, subject to confirmation by the Senate. 
C)  appointed by the National Monetary Commission. 
D)  appointed by the Securities and Exchange Commission, subject to congressional veto. 
A)  elected by the district bank presidents. 
B)  appointed by the President of the United States, subject to confirmation by the Senate. 
C)  appointed by the National Monetary Commission. 
D)  appointed by the Securities and Exchange Commission, subject to congressional veto.

Question 17

Which of the following statements regarding member banks is TRUE?

Accepted Answer

A)  A majority of banks are part of the Federal Reserve System, and they hold a majority of all bank deposits. 
B)  A minority of banks are part of the Federal Reserve System, but they hold a majority of all bank deposits. 
C)  A majority of banks are part of the Federal Reserve System, but they hold a minority of all bank deposits. 
D)  A minority of banks are part of the Federal Reserve System, and they hold a minority of all bank deposits. 
A)  A majority of banks are part of the Federal Reserve System, and they hold a majority of all bank deposits. 
B)  A minority of banks are part of the Federal Reserve System, but they hold a majority of all bank deposits. 
C)  A majority of banks are part of the Federal Reserve System, but they hold a minority of all bank deposits. 
D)  A minority of banks are part of the Federal Reserve System, and they hold a minority of all bank deposits.

Question 18

The Bank of the United States faced opposition from which of the following?

Accepted Answer

A)  local banks who resented the Bank's supervision 
B)  advocates of limited government who distrusted its power 
C)  farmers and small businesses who resented the Bank's interference with their ability to obtain loans 
D)  all of the above 
A)  local banks who resented the Bank's supervision 
B)  advocates of limited government who distrusted its power 
C)  farmers and small businesses who resented the Bank's interference with their ability to obtain loans 
D)  all of the above

Question 19

Why might Congress benefit from the Fed being self-financed?

Accepted Answer

A)  Self-financing increases Congressional control over the Fed. 
B)  Self-financing reduces the Fed's exposure to external pressures. 
C)  Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend. 
D)  Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed. 
A)  Self-financing increases Congressional control over the Fed. 
B)  Self-financing reduces the Fed's exposure to external pressures. 
C)  Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend. 
D)  Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed.

Question 20

Which best describes the Federal Reserve district banks?

Accepted Answer

A)  They are private ventures. 
B)  They are government ventures. 
C)  Some are private while others are government. 
D)  They are private-government joint ventures. 
A)  They are private ventures. 
B)  They are government ventures. 
C)  Some are private while others are government. 
D)  They are private-government joint ventures.

Which of the following men has NOT served as Chairman of the Board of Governors?

Who are the members of the Financial Stability Oversight Council?

The main argument in favor of Fed independence is that

Which groups were opposed to the Bank of the United States?

Who is considered to wield the most power in the Federal Reserve System?

Who had served as a de facto lender of last resort during the 1907 panic?

In 1976,Congress passed legislation which requires most federal government agencies to give public notice before a meeting.This legislation is the

How do individuals become members of the Board of Governors?

When did the Federal Reserve Act become law?

The political business cycle theory predicts that

All of the following help make the Fed independent of the political process EXCEPT

The regional Federal Reserve Banks are owned by

The principal-agent view of Fed motivation predicts that the Fed acts

What percentage of all commercial banks in the United States belong to the Federal Reserve System?

Who sets the inflation target for the Bank of England?

Members of the Board of Governors are

Which of the following statements regarding member banks is TRUE?

The Bank of the United States faced opposition from which of the following?

Why might Congress benefit from the Fed being self-financed?

Which best describes the Federal Reserve district banks?

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

Exam 13: The Federal Reserve and Central Banking

Which of the following men has NOT served as Chairman of the Board of Governors?

Who are the members of the Financial Stability Oversight Council?

The main argument in favor of Fed independence is that

Which groups were opposed to the Bank of the United States?

Who is considered to wield the most power in the Federal Reserve System?

Who had served as a de facto lender of last resort during the 1907 panic?

In 1976,Congress passed legislation which requires most federal government agencies to give public notice before a meeting.This legislation is the

How do individuals become members of the Board of Governors?

When did the Federal Reserve Act become law?

The political business cycle theory predicts that

All of the following help make the Fed independent of the political process EXCEPT

The regional Federal Reserve Banks are owned by

The principal-agent view of Fed motivation predicts that the Fed acts

What percentage of all commercial banks in the United States belong to the Federal Reserve System?

Who sets the inflation target for the Bank of England?

Members of the Board of Governors are

Which of the following statements regarding member banks is TRUE?

The Bank of the United States faced opposition from which of the following?

Why might Congress benefit from the Fed being self-financed?

Which best describes the Federal Reserve district banks?

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