Question 1

Members of Congress are able to influence monetary policy,albeit indirectly,through their ability to

Accepted Answer

A)  withhold appropriations from the Board of Governors. 
B)  withhold appropriations from the Federal Open Market Committee. 
C)  propose legislation that would force the Fed to submit budget requests to Congress, as must other government agencies. 
D)  instruct the General Accounting Office to audit the foreign exchange market functions of the Federal Reserve. 
A)  withhold appropriations from the Board of Governors. 
B)  withhold appropriations from the Federal Open Market Committee. 
C)  propose legislation that would force the Fed to submit budget requests to Congress, as must other government agencies. 
D)  instruct the General Accounting Office to audit the foreign exchange market functions of the Federal Reserve.

Question 2

Each governor on the Board of Governors can serve

Accepted Answer

A)  only one nonrenewable fourteen-year term. 
B)  one full nonrenewable fourteen-year term plus part of another term. 
C)  only one nonrenewable eight-year term. 
D)  one full nonrenewable eight-year term plus part of another term. 
A)  only one nonrenewable fourteen-year term. 
B)  one full nonrenewable fourteen-year term plus part of another term. 
C)  only one nonrenewable eight-year term. 
D)  one full nonrenewable eight-year term plus part of another term.

Question 3

Each Federal Reserve bank has nine directors. Of these ________ are appointed by the member banks and ________ are appointed by the Board of Governors.

Accepted Answer

A)  three; six 
B)  four; five 
C)  five; four 
D)  six; three 
A)  three; six 
B)  four; five 
C)  five; four 
D)  six; three

Question 4

Prior to 1980,member banks left the Federal Reserve System due to

Accepted Answer

A)  the high cost of discount loans. 
B)  the high cost of required reserves. 
C)  a desire to avoid interest rate regulations. 
D)  a desire to avoid credit controls. 
A)  the high cost of discount loans. 
B)  the high cost of required reserves. 
C)  a desire to avoid interest rate regulations. 
D)  a desire to avoid credit controls.

Question 5

The oldest central bank,having been founded in 1694,is the

Accepted Answer

A)  Bank of England. 
B)  Deutsche Bundesbank. 
C)  Bank of Japan. 
D)  Federal Reserve System. 
A)  Bank of England. 
B)  Deutsche Bundesbank. 
C)  Bank of Japan. 
D)  Federal Reserve System.

Question 6

The Second Bank of the United States

Accepted Answer

A)  was disbanded in 1811 when its charter was not renewed. 
B)  had its charter renewal vetoed in 1832. 
C)  is considered to be the primary cause of the bank panic of 1907. 
D)  None of the above. 
A)  was disbanded in 1811 when its charter was not renewed. 
B)  had its charter renewal vetoed in 1832. 
C)  is considered to be the primary cause of the bank panic of 1907. 
D)  None of the above.

Question 7

Of all commercial banks,about ________ percent belong to the Federal Reserve System.

Accepted Answer

A)  17 
B)  22 
C)  38 
D)  52 
A)  17 
B)  22 
C)  38 
D)  52

Question 8

Banks subject to reserve requirements set by the Federal Reserve System include

Accepted Answer

A)  only nationally chartered banks. 
B)  only banks with assets less than $100 million. 
C)  only banks with assets less than $500 million. 
D)  all banks whether or not they are members of the Federal Reserve System. 
A)  only nationally chartered banks. 
B)  only banks with assets less than $100 million. 
C)  only banks with assets less than $500 million. 
D)  all banks whether or not they are members of the Federal Reserve System.

Question 9

What makes the Federal Reserve so unique compared to other central banks around the world is its

Accepted Answer

A)  centralized structure. 
B)  decentralized structure. 
C)  regulatory functions. 
D)  monetary policy functions. 
A)  centralized structure. 
B)  decentralized structure. 
C)  regulatory functions. 
D)  monetary policy functions.

Question 10

The Federal Reserve entity that makes decisions regarding the conduct of open market operations is the

Accepted Answer

A)  Board of Governors. 
B)  chairman of the Board of Governors. 
C)  Federal Open Market Committee. 
D)  Open Market Advisory Council 
A)  Board of Governors. 
B)  chairman of the Board of Governors. 
C)  Federal Open Market Committee. 
D)  Open Market Advisory Council

Question 11

The theory of bureaucratic behavior when applied to the Fed helps to explain why the Fed

Accepted Answer

A)  was supportive of congressional attempts to limit the central bank's autonomy. 
B)  was so secretive about the conduct of future monetary policy. 
C)  sought less control over banks in the 1980s. 
D)  was willing to take on powerful groups that may threaten its autonomy. 
A)  was supportive of congressional attempts to limit the central bank's autonomy. 
B)  was so secretive about the conduct of future monetary policy. 
C)  sought less control over banks in the 1980s. 
D)  was willing to take on powerful groups that may threaten its autonomy.

Members of Congress are able to influence monetary policy,albeit indirectly,through their ability to

Each governor on the Board of Governors can serve

Each Federal Reserve bank has nine directors. Of these are appointed by the member banks and are appointed by the Board of Governors.

Prior to 1980,member banks left the Federal Reserve System due to

The oldest central bank,having been founded in 1694,is the

The Second Bank of the United States

Of all commercial banks,about ________ percent belong to the Federal Reserve System.

Banks subject to reserve requirements set by the Federal Reserve System include

What makes the Federal Reserve so unique compared to other central banks around the world is its

The Federal Reserve entity that makes decisions regarding the conduct of open market operations is the

The theory of bureaucratic behavior when applied to the Fed helps to explain why the Fed

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Exam 13: Central Banks and the Federal Reserve System

Members of Congress are able to influence monetary policy,albeit indirectly,through their ability to

Each governor on the Board of Governors can serve

Each Federal Reserve bank has nine directors. Of these ________ are appointed by the member banks and ________ are appointed by the Board of Governors.

Prior to 1980,member banks left the Federal Reserve System due to

The oldest central bank,having been founded in 1694,is the

The Second Bank of the United States

Of all commercial banks,about ________ percent belong to the Federal Reserve System.

Banks subject to reserve requirements set by the Federal Reserve System include

What makes the Federal Reserve so unique compared to other central banks around the world is its

The Federal Reserve entity that makes decisions regarding the conduct of open market operations is the

The theory of bureaucratic behavior when applied to the Fed helps to explain why the Fed

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Each Federal Reserve bank has nine directors. Of these are appointed by the member banks and are appointed by the Board of Governors.