Question 1

Which of the following is NOT a role of Federal Reserve Banks?

Accepted Answer

A)  conduct discount lending 
B)  serve on the FOMC 
C)  set the interest rate on reserves 
D)  manage check clearing in the banking system 
A)  conduct discount lending 
B)  serve on the FOMC 
C)  set the interest rate on reserves 
D)  manage check clearing in the banking system

Question 2

A majority of the members of the boards of the 12 Federal Reserve Banks are

Accepted Answer

A)  elected by bankers. 
B)  appointed by the president. 
C)  appointed by the Fed Chairman. 
D)  elected by the District Bank presidents. 
A)  elected by bankers. 
B)  appointed by the president. 
C)  appointed by the Fed Chairman. 
D)  elected by the District Bank presidents.

Question 3

Who owns the Federal Reserve banks?

Accepted Answer

A)  the private commercial banks in each district which are members of the Federal Reserve System 
B)  those households which have purchased stock in Federal Reserve System 
C)  the federal government 
D)  the governments of the states in which the banks are located 
A)  the private commercial banks in each district which are members of the Federal Reserve System 
B)  those households which have purchased stock in Federal Reserve System 
C)  the federal government 
D)  the governments of the states in which the banks are located

Question 4

The Dodd-Frank Act removed which group from decisions regarding the presidents of Federal Reserve Banks?

Accepted Answer

A)  Class A directors 
B)  Class B directors 
C)  Class C directors 
D)  Board of Governors 
A)  Class A directors 
B)  Class B directors 
C)  Class C directors 
D)  Board of Governors

Question 5

The margin requirement set by the Federal Reserve is the

Accepted Answer

A)  proportion of the purchase price of a security that an investor must pay in cash. 
B)  difference between the interest rate banks may charge on loans and the interest rate they receive from deposits. 
C)  same thing as the required reserve ratio on deposits. 
D)  difference banks must maintain between the value of their assets and the value of their liabilities. 
A)  proportion of the purchase price of a security that an investor must pay in cash. 
B)  difference between the interest rate banks may charge on loans and the interest rate they receive from deposits. 
C)  same thing as the required reserve ratio on deposits. 
D)  difference banks must maintain between the value of their assets and the value of their liabilities.

Question 6

The only state to have two Federal Reserve District Banks is

Accepted Answer

A)  Pennsylvania. 
B)  Missouri. 
C)  California. 
D)  Texas. 
A)  Pennsylvania. 
B)  Missouri. 
C)  California. 
D)  Texas.

Question 7

What are the roles of Federal Reserve district banks?

Accepted Answer

The roles of district banks include mana

Question 8

Which of the following appears to be evidence against the public interest view of the Fed's motivation?

Accepted Answer

A)  the conflict with the Treasury over interest rate fixing during World War II 
B)  the failure of the Fed to emphasize the goal of price stability 
C)  the unwillingness of the Fed to turn over its excess profits to the Treasury 
D)  the independence of Fed chairmen from the authority of the president 
A)  the conflict with the Treasury over interest rate fixing during World War II 
B)  the failure of the Fed to emphasize the goal of price stability 
C)  the unwillingness of the Fed to turn over its excess profits to the Treasury 
D)  the independence of Fed chairmen from the authority of the president

Question 9

The members of Federal Reserve district bank boards of directors who represent the public interest are known as

Accepted Answer

A)  Class A directors. 
B)  Class B directors. 
C)  Class C directors. 
D)  Class D directors. 
A)  Class A directors. 
B)  Class B directors. 
C)  Class C directors. 
D)  Class D directors.

Question 10

How are the operations of the Federal Reserve financed?

Accepted Answer

Most of the Fed's earnings come from int

Question 11

What are the limitations to the Fed's independence?

Accepted Answer

First,the president can exercise control

Question 12

In the early post-war years,the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be

Accepted Answer

A)  recession. 
B)  inflation. 
C)  higher taxes. 
D)  lower taxes. 
A)  recession. 
B)  inflation. 
C)  higher taxes. 
D)  lower taxes.

Question 13

Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?

Accepted Answer

A)  It required all banks to maintain reserve deposits with the Fed. 
B)  It gave member and nonmember banks equivalent access to discount loans. 
C)  It halted the decline in Fed membership. 
D)  It eliminated restrictions on interstate banking for member banks. 
A)  It required all banks to maintain reserve deposits with the Fed. 
B)  It gave member and nonmember banks equivalent access to discount loans. 
C)  It halted the decline in Fed membership. 
D)  It eliminated restrictions on interstate banking for member banks.

Question 14

What is the primary objective of the Financial Stability Oversight Council?

Accepted Answer

The objective of the council i

Question 15

What is the name of the entity,composed of Federal Reserve district bankers,that consults on monetary policy?

Accepted Answer

A)  The Federal Open Market Committee 
B)  The Federal Advisory Council 
C)  The Monetary Policy Council 
D)  The District Bank Committee 
A)  The Federal Open Market Committee 
B)  The Federal Advisory Council 
C)  The Monetary Policy Council 
D)  The District Bank Committee

Question 16

To conduct open market operations,the FOMC issues a directive to

Accepted Answer

A)  the Open Market Desk at the Federal Reserve Bank of New York. 
B)  the Board of Governors in Washington, D.C. 
C)  the presidents of the district banks. 
D)  the chairman of the New York Stock Exchange. 
A)  the Open Market Desk at the Federal Reserve Bank of New York. 
B)  the Board of Governors in Washington, D.C. 
C)  the presidents of the district banks. 
D)  the chairman of the New York Stock Exchange.

Question 17

Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?

Accepted Answer

A)  Spain 
B)  Portugal 
C)  Greece 
D)  Germany 
A)  Spain 
B)  Portugal 
C)  Greece 
D)  Germany

Question 18

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

Accepted Answer

A)  approving bank mergers 
B)  determining permissible activities for bank holding companies 
C)  carrying out open market operations 
D)  setting the salaries of the presidents and officers of district banks 
A)  approving bank mergers 
B)  determining permissible activities for bank holding companies 
C)  carrying out open market operations 
D)  setting the salaries of the presidents and officers of district banks

Question 19

The movement to set up a central bank in the United States was spurred by the financial panic that occurred in

Accepted Answer

A)  1816. 
B)  1907. 
C)  1929. 
D)  1987. 
A)  1816. 
B)  1907. 
C)  1929. 
D)  1987.

Question 20

The facts show that the political business cycle theory

Accepted Answer

A)  does a good job of explaining monetary policy during presidential election years. 
B)  is unable to explain monetary policy during presidential election years. 
C)  does not generally hold true in the United States. 
D)  explains monetary policy best during years in which the president is running for reelection. 
A)  does a good job of explaining monetary policy during presidential election years. 
B)  is unable to explain monetary policy during presidential election years. 
C)  does not generally hold true in the United States. 
D)  explains monetary policy best during years in which the president is running for reelection.

Which of the following is NOT a role of Federal Reserve Banks?

A majority of the members of the boards of the 12 Federal Reserve Banks are

Who owns the Federal Reserve banks?

The Dodd-Frank Act removed which group from decisions regarding the presidents of Federal Reserve Banks?

The margin requirement set by the Federal Reserve is the

The only state to have two Federal Reserve District Banks is

What are the roles of Federal Reserve district banks?

Which of the following appears to be evidence against the public interest view of the Fed's motivation?

The members of Federal Reserve district bank boards of directors who represent the public interest are known as

How are the operations of the Federal Reserve financed?

What are the limitations to the Fed's independence?

In the early post-war years,the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be

Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?

What is the primary objective of the Financial Stability Oversight Council?

What is the name of the entity,composed of Federal Reserve district bankers,that consults on monetary policy?

To conduct open market operations,the FOMC issues a directive to

Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?

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

The movement to set up a central bank in the United States was spurred by the financial panic that occurred in

The facts show that the political business cycle theory

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 is NOT a role of Federal Reserve Banks?

A majority of the members of the boards of the 12 Federal Reserve Banks are

Who owns the Federal Reserve banks?

The Dodd-Frank Act removed which group from decisions regarding the presidents of Federal Reserve Banks?

The margin requirement set by the Federal Reserve is the

The only state to have two Federal Reserve District Banks is

What are the roles of Federal Reserve district banks?

Which of the following appears to be evidence against the public interest view of the Fed's motivation?

The members of Federal Reserve district bank boards of directors who represent the public interest are known as

How are the operations of the Federal Reserve financed?

What are the limitations to the Fed's independence?

In the early post-war years,the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be

Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?

What is the primary objective of the Financial Stability Oversight Council?

What is the name of the entity,composed of Federal Reserve district bankers,that consults on monetary policy?

To conduct open market operations,the FOMC issues a directive to

Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?

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

The movement to set up a central bank in the United States was spurred by the financial panic that occurred in

The facts show that the political business cycle theory

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