Question 1

A central bank is a Federal government agency that facilitates operation of the financial system and regulates growth of the money supply.

Accepted Answer

A) True 
 B)False

Question 2

The most used monetary policy instrument used by the Fed is

Accepted Answer

A) open market operations 
B) changing the discount rate 
C) changing the reserve requirement 
D) none of the above 
A) open market operations 
B) changing the discount rate 
C) changing the reserve requirement 
D) none of the above

Question 3

Which of the following statements is most correct?

Accepted Answer

A) Open-market operations always lead to an immediate increase in the volume of lending;this is especially true when bonds are sold to restrict deposit growth. 
B) Open-market operations don't always lead to an immediate change in the volume of deposits;this is especially true when bonds are purchased to expand deposit growth. 
C) Open-market operations always lead to an immediate change in the volume of deposits;this is especially true when bonds are sold to restrict deposit growth. 
D) Open-market operations don't always lead to an immediate change in the volume of deposits;this is especially true when bonds are sold to restrict deposit growth. 
E) none of the above 
A) Open-market operations always lead to an immediate increase in the volume of lending;this is especially true when bonds are sold to restrict deposit growth. 
B) Open-market operations don't always lead to an immediate change in the volume of deposits;this is especially true when bonds are purchased to expand deposit growth. 
C) Open-market operations always lead to an immediate change in the volume of deposits;this is especially true when bonds are sold to restrict deposit growth. 
D) Open-market operations don't always lead to an immediate change in the volume of deposits;this is especially true when bonds are sold to restrict deposit growth. 
E) none of the above

Question 4

The ____________________________ conducts monetary policy for the twelve European countries that adopted the euro as their common currency.

Accepted Answer

A) European Central Bank 
B) Switzerland Central Bank 
C) London Central Bank 
D) British National Bank 
A) European Central Bank 
B) Switzerland Central Bank 
C) London Central Bank 
D) British National Bank

Question 5

The Board of Governors:

Accepted Answer

A) is elected by the member banks 
B) is appointed by the Senate 
C) has seven members appointed for 14-year terms 
D) has seven members appointed for a term of 12 years 
A) is elected by the member banks 
B) is appointed by the Senate 
C) has seven members appointed for 14-year terms 
D) has seven members appointed for a term of 12 years

Question 6

The percentage of deposits that must be held as reserves is called

Accepted Answer

A) the bank reserve percentage 
B) the required reserve ratio 
C) the excess reserve ratio 
D) the fractional reserve percentage 
A) the bank reserve percentage 
B) the required reserve ratio 
C) the excess reserve ratio 
D) the fractional reserve percentage

Question 7

Which of the following is a method by which the Federal Reserve establishes monetary policy?

Accepted Answer

A) setting reserve requirements, 
B) altering the discount rate, 
C) through federal open market operations, 
D) all of the above methods are used. 
E) none of the above 
A) setting reserve requirements, 
B) altering the discount rate, 
C) through federal open market operations, 
D) all of the above methods are used. 
E) none of the above

Question 8

When the Federal Reserve System was created,it was thought that its most important influence over monetary conditions would be:

Accepted Answer

A) lending to banks to bolster their reserve positions 
B) open market operations 
C) the issuance of Federal Reserve notes 
D) the changing of reserve requirements 
A) lending to banks to bolster their reserve positions 
B) open market operations 
C) the issuance of Federal Reserve notes 
D) the changing of reserve requirements

Question 9

The minimum amount of total reserves that depository institutions must hold are called fractional reserves.

Accepted Answer

A) True 
 B)False

Question 10

____________________________ authorizes the Federal Reserve Board to unfair or deceptive acts or practices on the part of banks and to issue regulations to prohibit them.

Accepted Answer

A) Truth in Lending Act 
B) Equal Credit Opportunity Act 
C) Federal Trade Commission Improvement Act 
D) Fair Credit Billing Act 
A) Truth in Lending Act 
B) Equal Credit Opportunity Act 
C) Federal Trade Commission Improvement Act 
D) Fair Credit Billing Act

A central bank is a Federal government agency that facilitates operation of the financial system and regulates growth of the money supply.

The most used monetary policy instrument used by the Fed is

Which of the following statements is most correct?

The ____________________________ conducts monetary policy for the twelve European countries that adopted the euro as their common currency.

The Board of Governors:

The percentage of deposits that must be held as reserves is called

Which of the following is a method by which the Federal Reserve establishes monetary policy?

When the Federal Reserve System was created,it was thought that its most important influence over monetary conditions would be:

The minimum amount of total reserves that depository institutions must hold are called fractional reserves.

____________________________ authorizes the Federal Reserve Board to unfair or deceptive acts or practices on the part of banks and to issue regulations to prohibit them.

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 4: Federal Reserve System

A central bank is a Federal government agency that facilitates operation of the financial system and regulates growth of the money supply.

The most used monetary policy instrument used by the Fed is

Which of the following statements is most correct?

The ____________________________ conducts monetary policy for the twelve European countries that adopted the euro as their common currency.

The Board of Governors:

The percentage of deposits that must be held as reserves is called

Which of the following is a method by which the Federal Reserve establishes monetary policy?

When the Federal Reserve System was created,it was thought that its most important influence over monetary conditions would be:

The minimum amount of total reserves that depository institutions must hold are called fractional reserves.

____________________________ authorizes the Federal Reserve Board to unfair or deceptive acts or practices on the part of banks and to issue regulations to prohibit them.

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters