Question 1

The Banking Acts of 1933 and 1935

Accepted Answer

A)  established the Federal Reserve System. 
B)  increased central control of the Federal Reserve System. 
C)  eliminated the authority of the Board of Governors to set reserve requirements. 
D)  made the Secretary of the Treasury a member of the Board of Governors. 
A)  established the Federal Reserve System. 
B)  increased central control of the Federal Reserve System. 
C)  eliminated the authority of the Board of Governors to set reserve requirements. 
D)  made the Secretary of the Treasury a member of the Board of Governors.

Question 2

The European Central Bank is responsible for the monetary policy of

Accepted Answer

A)  the 5 largest European economies. 
B)  all countries on the continent of Europe. 
C)  all 28 countries in the European Union. 
D)  the 19 sovereign countries that use the euro as their currency. 
A)  the 5 largest European economies. 
B)  all countries on the continent of Europe. 
C)  all 28 countries in the European Union. 
D)  the 19 sovereign countries that use the euro as their currency.

Question 3

Which of the following statements is NOT true?

Accepted Answer

A)  The U.S. Constitution does not explicitly give the federal government the authority to establish a central bank. 
B)  The U.S. Constitution states that Congress has the power "To coin money [and] regulate the value thereof." 
C)  Congress delegated the power to coin money and regulate its value to the Federal Reserve in the Federal Reserve Act. 
D)  The federal courts have never upheld the constitutionality of the Federal Reserve Act. 
A)  The U.S. Constitution does not explicitly give the federal government the authority to establish a central bank. 
B)  The U.S. Constitution states that Congress has the power "To coin money [and] regulate the value thereof." 
C)  Congress delegated the power to coin money and regulate its value to the Federal Reserve in the Federal Reserve Act. 
D)  The federal courts have never upheld the constitutionality of the Federal Reserve Act.

Question 4

The Beige Book is prepared by

Accepted Answer

A)  district banks. 
B)  the Board of Governors. 
C)  FOMC staff members. 
D)  the Commerce Department. 
A)  district banks. 
B)  the Board of Governors. 
C)  FOMC staff members. 
D)  the Commerce Department.

Question 5

The original intent of the Federal Reserve Act of 1913 was to provide the Fed with what role?

Accepted Answer

A)  regulator of the banking system 
B)  lender of last resort 
C)  manage the exchange rate 
D)  maintain a balanced budget 
A)  regulator of the banking system 
B)  lender of last resort 
C)  manage the exchange rate 
D)  maintain a balanced budget

Question 6

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

Accepted Answer

A)  between bankers and business interests 
B)  among states and regions 
C)  between importers and exporters 
D)  between government and the private sector 
A)  between bankers and business interests 
B)  among states and regions 
C)  between importers and exporters 
D)  between government and the private sector

Question 7

The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture 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 8

The president of which Federal Reserve Bank is always a voting member of the Federal Open Market Committee?

Accepted Answer

A)  Philadelphia 
B)  Boston 
C)  Chicago 
D)  New York 
A)  Philadelphia 
B)  Boston 
C)  Chicago 
D)  New York

Question 9

What are the three books to which the FOMC has access and what information is included in each?

Accepted Answer

The Green Book contains a national econo

Question 10

Which president failed to renew the charter of the Second Bank of the United States?

Accepted Answer

A)  George Washington 
B)  Andrew Jackson 
C)  Franklin Roosevelt 
D)  Lyndon Johnson 
A)  George Washington 
B)  Andrew Jackson 
C)  Franklin Roosevelt 
D)  Lyndon Johnson

Question 11

What are the primary arguments for and against the independence of the Fed?

Accepted Answer

The main argument for the Fed's independ

Question 12

The Chairman of the Federal Open Market Committee is also

Accepted Answer

A)  the president of the Federal Reserve Bank of New York. 
B)  the chairman of the Securities and Exchange Commission. 
C)  the chairman of the Federal Deposit Insurance Corporation. 
D)  the chairman of the Board of Governors. 
A)  the president of the Federal Reserve Bank of New York. 
B)  the chairman of the Securities and Exchange Commission. 
C)  the chairman of the Federal Deposit Insurance Corporation. 
D)  the chairman of the Board of Governors.

Question 13

Federal Reserve districts

Accepted Answer

A)  conform to state boundaries. 
B)  group together economically similar states. 
C)  have equal populations. 
D)  cut across state and economic boundaries. 
A)  conform to state boundaries. 
B)  group together economically similar states. 
C)  have equal populations. 
D)  cut across state and economic boundaries.

Question 14

What was the original intent of the Federal Reserve Act of 1913?

Accepted Answer

The original intent was to cre

Question 15

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed?

Accepted Answer

The Government Accountability Office was

Question 16

As of 2015,the dividend the Fed pays to member banks with assets greater than $10 billion is

Accepted Answer

A)  2%. 
B)  6%. 
C)  the lesser of 6% or the interest rate on 10-year Treasury notes. 
D)  the greater of 6% or the interest rate on 10-year Treasury notes. 
A)  2%. 
B)  6%. 
C)  the lesser of 6% or the interest rate on 10-year Treasury notes. 
D)  the greater of 6% or the interest rate on 10-year Treasury notes.

Question 17

How many Federal Reserve districts are there?

Accepted Answer

A)  1 
B)  2 
C)  12 
D)  50 
A)  1 
B)  2 
C)  12 
D)  50

Question 18

Which of the following statements is correct?

Accepted Answer

A)  The Fed is fully insulated from external pressures due to the long terms that members of the Board of Governors serve. 
B)  The Fed is fully insulated from external pressures because it does not need to go through the normal congressional appropriations process. 
C)  The Fed is fully insulated from external pressures because it has a constitutional mandate. 
D)  The Fed is only partially insulated from external pressures. 
A)  The Fed is fully insulated from external pressures due to the long terms that members of the Board of Governors serve. 
B)  The Fed is fully insulated from external pressures because it does not need to go through the normal congressional appropriations process. 
C)  The Fed is fully insulated from external pressures because it has a constitutional mandate. 
D)  The Fed is only partially insulated from external pressures.

Question 19

What is the length of a term for the Chairman of the Board of Governors?

Accepted Answer

A)  one year 
B)  four years 
C)  14 years 
D)  28 years 
A)  one year 
B)  four years 
C)  14 years 
D)  28 years

Question 20

The chair of the Federal Reserve is

Accepted Answer

A)  chosen by the members of the Board of Governors. 
B)  chosen by the president. 
C)  elected by Congress. 
D)  the Treasury Secretary. 
A)  chosen by the members of the Board of Governors. 
B)  chosen by the president. 
C)  elected by Congress. 
D)  the Treasury Secretary.

The Banking Acts of 1933 and 1935

The European Central Bank is responsible for the monetary policy of

Which of the following statements is NOT true?

The Beige Book is prepared by

The original intent of the Federal Reserve Act of 1913 was to provide the Fed with what role?

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture are known as

The president of which Federal Reserve Bank is always a voting member of the Federal Open Market Committee?

What are the three books to which the FOMC has access and what information is included in each?

Which president failed to renew the charter of the Second Bank of the United States?

What are the primary arguments for and against the independence of the Fed?

The Chairman of the Federal Open Market Committee is also

Federal Reserve districts

What was the original intent of the Federal Reserve Act of 1913?

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed?

As of 2015,the dividend the Fed pays to member banks with assets greater than $10 billion is

How many Federal Reserve districts are there?

Which of the following statements is correct?

What is the length of a term for the Chairman of the Board of Governors?

The chair of the Federal Reserve is

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

The Banking Acts of 1933 and 1935

The European Central Bank is responsible for the monetary policy of

Which of the following statements is NOT true?

The Beige Book is prepared by

The original intent of the Federal Reserve Act of 1913 was to provide the Fed with what role?

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture are known as

The president of which Federal Reserve Bank is always a voting member of the Federal Open Market Committee?

What are the three books to which the FOMC has access and what information is included in each?

Which president failed to renew the charter of the Second Bank of the United States?

What are the primary arguments for and against the independence of the Fed?

The Chairman of the Federal Open Market Committee is also

Federal Reserve districts

What was the original intent of the Federal Reserve Act of 1913?

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed?

As of 2015,the dividend the Fed pays to member banks with assets greater than $10 billion is

How many Federal Reserve districts are there?

Which of the following statements is correct?

What is the length of a term for the Chairman of the Board of Governors?

The chair of the Federal Reserve is

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