Exam 15: Tools of Monetary Policy

The purpose of the commitment by the Fed to keep the federal funds rate at zero for a long period of time is to

If Treasury deposits at the Fed are predicted to fall,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

In the market for reserves,if the federal funds rate is above the interest rate paid on excess reserves,an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall,everything else held constant.

When bad storms slow the check-clearing process,float tends to ________ causing the Fed to initiate ________ open market ________.

From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009,amount of Federal Reserve assets rose,leading to

Funds held in ________ are subject to reserve requirements.

The primary indicator of the Fed's stance on monetary policy is

Everything else held constant,when the federal funds rate is ________ the interest rate paid on reserves,the quantity of reserves demanded rises when the federal funds rate ________.

Everything else held constant,the vertical section of the supply curve of reserves is lengthened when the

Open market sales ________ reserves and the monetary base thereby ________ the money supply.

When the European System of Central Banks uses main refinancing operations,it is similar to the Federal Reserve using

If Treasury deposits at the Fed are predicted to ________,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

The Federal Reserve will engage in a repurchase agreement when it wants to ________ reserves ________ in the banking system.

To lower long-term interest rates,in 2010 the Fed started its new open market operation program to purchase

From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009,the huge expansion in the Fed's balance sheet and the monetary base did not result in a large increase in monetary supply because

The most common type of discount lending that the Fed extends to banks is called

When the federal funds rate equals the discount rate

The Fed is considering eliminating

In the market for reserves,if the federal funds rate is between the discount rate and the interest rate paid on excess reserves,an increase in the reserve requirement ________ the demand of reserves and causes the federal funds interest rate to ________,everything else held constant.

In the market for reserves,if the federal funds rate is above the interest rate paid on excess reserves,an open market sale ________ the supply of reserves causing the federal funds rate to ________,everything else held constant.