Question 1

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 2

Who had served as a de facto lender of last resort during the 1907 panic?

Accepted Answer

A) The U.S. Treasury 
B) J) P. Morgan 
C) Henry Ford 
D) John D. Rockefeller 
A) The U.S. Treasury 
B) J) P. Morgan 
C) Henry Ford 
D) John D. Rockefeller

Question 3

Which best describes the Federal Reserve district banks?

Accepted Answer

A) They are private ventures. 
B) They are government ventures. 
C) Some are private while others are government. 
D) They are private-government joint ventures. 
A) They are private ventures. 
B) They are government ventures. 
C) Some are private while others are government. 
D) They are private-government joint ventures.

Question 4

The beige book is prepared by

Accepted Answer

A) district banks. 
B) Board of Governors. 
C) FOMC staff members. 
D) commerce department. 
A) district banks. 
B) Board of Governors. 
C) FOMC staff members. 
D) commerce department.

Question 5

Which of the following is NOT considered one of the four groups in the Federal Reserve System?

Accepted Answer

A) Federal Reserve banks 
B) Federal Deposit Insurance Corporation 
C) Board of Governors 
D) Federal Open Market Committee 
A) Federal Reserve banks 
B) Federal Deposit Insurance Corporation 
C) Board of Governors 
D) Federal Open Market Committee

Question 6

Which of the following cities does NOT contain a Federal Reserve bank?

Accepted Answer

A) Cleveland 
B) Dallas 
C) Los Angeles 
D) Boston 
A) Cleveland 
B) Dallas 
C) Los Angeles 
D) Boston

Question 7

The Federal Reserve district banks

Accepted Answer

A) do not engage in monetary policy. 
B) engage in monetary policy directly through discount lending. 
C) engage in monetary policy directly through open market operations. 
D) engage in monetary policy directly through their membership on Federal Reserve committees. 
A) do not engage in monetary policy. 
B) engage in monetary policy directly through discount lending. 
C) engage in monetary policy directly through open market operations. 
D) engage in monetary policy directly through their membership on Federal Reserve committees.

Question 8

Why did fewer state banks choose to become or remain members of the Federal Reserve System during the 1960s and 1970s?

Accepted Answer

A) Nominal interest rates rose. 
B) The required reserve ratio rose. 
C) The discount rate rose. 
D) Open market operations declined. 
A) Nominal interest rates rose. 
B) The required reserve ratio rose. 
C) The discount rate rose. 
D) Open market operations declined.

Question 9

Congress authorized a second Bank of the United States partly in response to:

Accepted Answer

A) difficulty in funding the American Revolution 
B) difficulty in funding the War of 1812 
C) difficulty in funding the Industrial Revolution 
D) difficulty in funding the Civil War 
A) difficulty in funding the American Revolution 
B) difficulty in funding the War of 1812 
C) difficulty in funding the Industrial Revolution 
D) difficulty in funding the Civil War

Question 10

Who sets the inflation target for the Bank of England?

Accepted Answer

A) Prime Minister 
B) Chancellor of the Exchequor 
C) head of the monetary policy committee 
D) majority vote of the monetary policy committee 
A) Prime Minister 
B) Chancellor of the Exchequor 
C) head of the monetary policy committee 
D) majority vote of the monetary policy committee

Question 11

In 1913, Congress and the President did not envision that the Fed would control

Accepted Answer

A) the money supply. 
B) discount loans. 
C) lender-of-last-resort activity. 
D) broad control over most aspects of money and the banking system. 
A) the money supply. 
B) discount loans. 
C) lender-of-last-resort activity. 
D) broad control over most aspects of money and the banking system.

Question 12

Federal Reserve district banks perform all of the following roles EXCEPT

Accepted Answer

A) managing checking clearing in the payments system. 
B) performing regulatory functions. 
C) setting the federal funds rate. 
D) managing currency in circulation by issuing new Federal Reserve Notes. 
A) managing checking clearing in the payments system. 
B) performing regulatory functions. 
C) setting the federal funds rate. 
D) managing currency in circulation by issuing new Federal Reserve Notes.

Question 13

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 14

The first Fed chair to hold a press conference was:

Accepted Answer

A) Paul Volcker 
B) Alan Greenspan 
C) Ben Bernanke 
D) Mario Draghi 
A) Paul Volcker 
B) Alan Greenspan 
C) Ben Bernanke 
D) Mario Draghi

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

Under the Federal Reserve Act, which banks must be members of the Federal Reserve System?

Accepted Answer

A) all commercial banks 
B) national banks 
C) state banks 
D) all banks with capital in excess of $100 million 
A) all commercial banks 
B) national banks 
C) state banks 
D) all banks with capital in excess of $100 million

Question 17

The issue of Fed independence is most often raised by

Accepted Answer

A) disagreement over the role the Fed should play in managing monetary policy. 
B) the Fed's refusal to carry out the wishes of the President. 
C) the Fed's refusal to carry out the wishes of Congress. 
D) the public's negative reaction to Fed policy. 
A) disagreement over the role the Fed should play in managing monetary policy. 
B) the Fed's refusal to carry out the wishes of the President. 
C) the Fed's refusal to carry out the wishes of Congress. 
D) the public's negative reaction to Fed policy.

Question 18

Which of the following men has NOT served as Chairman of the Board of Governors?

Accepted Answer

A) Milton Friedman 
B) Arthur Burns 
C) Paul Volcker 
D) Alan Greenspan 
A) Milton Friedman 
B) Arthur Burns 
C) Paul Volcker 
D) Alan Greenspan

Question 19

How did the Fed peg interest rates during World War 2?

Accepted Answer

A) by setting a low federal funds rate 
B) by agreeing to purchase any bonds that were not purchased by private investors 
C) through extensive use of discount loans 
D) through nationalization of the banking system 
A) by setting a low federal funds rate 
B) by agreeing to purchase any bonds that were not purchased by private investors 
C) through extensive use of discount loans 
D) through nationalization of the banking system

Question 20

What is included in the public statement released by the FOMC following the conclusion of its meeting?

Accepted Answer

The FOMC summarizes its view o

Who owns the Federal Reserve banks?

Who had served as a de facto lender of last resort during the 1907 panic?

Which best describes the Federal Reserve district banks?

The beige book is prepared by

Which of the following is NOT considered one of the four groups in the Federal Reserve System?

Which of the following cities does NOT contain a Federal Reserve bank?

The Federal Reserve district banks

Why did fewer state banks choose to become or remain members of the Federal Reserve System during the 1960s and 1970s?

Congress authorized a second Bank of the United States partly in response to:

Who sets the inflation target for the Bank of England?

In 1913, Congress and the President did not envision that the Fed would control

Federal Reserve district banks perform all of the following roles EXCEPT

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

The first Fed chair to hold a press conference was:

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

Under the Federal Reserve Act, which banks must be members of the Federal Reserve System?

The issue of Fed independence is most often raised by

Which of the following men has NOT served as Chairman of the Board of Governors?

How did the Fed peg interest rates during World War 2?

What is included in the public statement released by the FOMC following the conclusion of its meeting?

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

Investment Banks, Mutual Funds, Hedge Funds, and the Shadow Banking System

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

Who owns the Federal Reserve banks?

Who had served as a de facto lender of last resort during the 1907 panic?

Which best describes the Federal Reserve district banks?

The beige book is prepared by

Which of the following is NOT considered one of the four groups in the Federal Reserve System?

Which of the following cities does NOT contain a Federal Reserve bank?

The Federal Reserve district banks

Why did fewer state banks choose to become or remain members of the Federal Reserve System during the 1960s and 1970s?

Congress authorized a second Bank of the United States partly in response to:

Who sets the inflation target for the Bank of England?

In 1913, Congress and the President did not envision that the Fed would control

Federal Reserve district banks perform all of the following roles EXCEPT

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

The first Fed chair to hold a press conference was:

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

Under the Federal Reserve Act, which banks must be members of the Federal Reserve System?

The issue of Fed independence is most often raised by

Which of the following men has NOT served as Chairman of the Board of Governors?

How did the Fed peg interest rates during World War 2?

What is included in the public statement released by the FOMC following the conclusion of its meeting?

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

Investment Banks, Mutual Funds, Hedge Funds, and the Shadow Banking System

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