Question 1

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

Accepted Answer

The greenbook contains a national econom

Question 2

What new authority did the ECB receive in 2012?

Accepted Answer

A) the authority to oversee the banking systems of all member countries 
B) the ability to set different interest rates in different member countries 
C) the ability to require that member nations balance their budget 
D) permission to monetize the debt of member countries 
A) the authority to oversee the banking systems of all member countries 
B) the ability to set different interest rates in different member countries 
C) the ability to require that member nations balance their budget 
D) permission to monetize the debt of member countries

Question 3

Which of the following is the mandate of the European Central Bank?

Accepted Answer

A) high economic growth 
B) price stability 
C) low unemployment 
D) a fixed exchange rate 
A) high economic growth 
B) price stability 
C) low unemployment 
D) a fixed exchange rate

Question 4

Which of the following is NOT a role of Federal Reserve Banks?

Accepted Answer

A) conduct discount lending 
B) serve on the FOMC 
C) set the interest rate on reserves 
D) manage check clearing in the banking system 
A) conduct discount lending 
B) serve on the FOMC 
C) set the interest rate on reserves 
D) manage check clearing in the banking system

Question 5

How does the Fed reach its target for the federal funds rate?

Accepted Answer

A) by changing the discount rate 
B) by changing reserve requirements 
C) by adjusting the level of reserves 
D) by directly setting the federal funds rate 
A) by changing the discount rate 
B) by changing reserve requirements 
C) by adjusting the level of reserves 
D) by directly setting the federal funds rate

Question 6

The Depository Institutions Deregulation and Monetary Control Act of 1980

Accepted Answer

A) eliminated the requirement that banks hold reserve deposits with the Fed. 
B) required all state banks to join the Federal Reserve System. 
C) required all banks to maintain reserve deposits with the Fed. 
D) prohibited nonmember banks from receiving discount loans. 
A) eliminated the requirement that banks hold reserve deposits with the Fed. 
B) required all state banks to join the Federal Reserve System. 
C) required all banks to maintain reserve deposits with the Fed. 
D) prohibited nonmember banks from receiving discount loans.

Question 7

Which of the following statements is correct?

Accepted Answer

A) Federal Reserve district banks are owned by the government. 
B) Member banks receive no return on the stock they own in Federal district banks. 
C) Federal Reserve district banks pay dividends on their earnings to member banks. 
D) The boards of directors of the district banks are all local bankers. 
A) Federal Reserve district banks are owned by the government. 
B) Member banks receive no return on the stock they own in Federal district banks. 
C) Federal Reserve district banks pay dividends on their earnings to member banks. 
D) The boards of directors of the district banks are all local bankers.

Question 8

Who organized the Bank of the United States?

Accepted Answer

A) Alexander Hamilton 
B) George Washington 
C) Andrew Jackson 
D) Woodrow Wilson 
A) Alexander Hamilton 
B) George Washington 
C) Andrew Jackson 
D) Woodrow Wilson

Question 9

The movement to set up a central bank in the United States was spurred by the financial panic that occurred in

Accepted Answer

A) 1816. 
B) 1907. 
C) 1929. 
D) 1987. 
A) 1816. 
B) 1907. 
C) 1929. 
D) 1987.

Question 10

Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?

Accepted Answer

A) Spain 
B) Portugal 
C) Greece 
D) Germany 
A) Spain 
B) Portugal 
C) Greece 
D) Germany

Question 11

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 12

Generally,

Accepted Answer

A) countries with the most independent central banks have the lowest inflation rates. 
B) countries with the least independent central banks have the lowest inflation rates. 
C) countries without central banks have the lowest inflation rates. 
D) the degree of independence of a country's central banks has little to do with its inflation rate. 
A) countries with the most independent central banks have the lowest inflation rates. 
B) countries with the least independent central banks have the lowest inflation rates. 
C) countries without central banks have the lowest inflation rates. 
D) the degree of independence of a country's central banks has little to do with its inflation rate.

Question 13

All of the following help make the Fed independent of the political process EXCEPT

Accepted Answer

A) financial independence. 
B) chair of Fed receives a lifetime appointment. 
C) Board members receive a long, nonrenewable appointment. 
D) Board members' terms expire at different times, reducing the possible number of appointees by any one president. 
A) financial independence. 
B) chair of Fed receives a lifetime appointment. 
C) Board members receive a long, nonrenewable appointment. 
D) Board members' terms expire at different times, reducing the possible number of appointees by any one president.

Question 14

Former Fed chair Alan Greenspan's use of ambiguous and vague language came to be known as:

Accepted Answer

A) Greenspeak 
B) Fedspeak 
C) Alanguage 
D) jibberish 
A) Greenspeak 
B) Fedspeak 
C) Alanguage 
D) jibberish

Question 15

If a member of the Board of Governors is limited to one 14-year term, how did Alan Greenspan serve 19 years on the Board of Governors?

Accepted Answer

A) A special exemption was approved for him. 
B) The rule was not in place at the time. 
C) He completed the remaining years left on someone else's term and then served one 14-year term. 
D) He didn't serve consecutive terms. 
A) A special exemption was approved for him. 
B) The rule was not in place at the time. 
C) He completed the remaining years left on someone else's term and then served one 14-year term. 
D) He didn't serve consecutive terms.

Question 16

The members of Federal Reserve district bank boards of directors appointed by the Board of Governors 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 17

Which groups were opposed to the Bank of the United States?

Accepted Answer

A) northeastern industrial interests 
B) northeastern financial interests 
C) southern and western agrarian and small-business interests 
D) exporters 
A) northeastern industrial interests 
B) northeastern financial interests 
C) southern and western agrarian and small-business interests 
D) exporters

Question 18

What are the roles of Federal Reserve district banks?

Accepted Answer

The roles of district banks include mana

Question 19

How are the operations of the Federal Reserve financed?

Accepted Answer

Most of the Fed's earnings come from int

Question 20

The national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the

Accepted Answer

A) green book. 
B) beige book. 
C) blue book. 
D) Fed book. 
A) green book. 
B) beige book. 
C) blue book. 
D) Fed book.

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

What new authority did the ECB receive in 2012?

Which of the following is the mandate of the European Central Bank?

Which of the following is NOT a role of Federal Reserve Banks?

How does the Fed reach its target for the federal funds rate?

The Depository Institutions Deregulation and Monetary Control Act of 1980

Which of the following statements is correct?

Who organized the Bank of the United States?

The movement to set up a central bank in the United States was spurred by the financial panic that occurred in

Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?

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

Generally,

All of the following help make the Fed independent of the political process EXCEPT

Former Fed chair Alan Greenspan's use of ambiguous and vague language came to be known as:

If a member of the Board of Governors is limited to one 14-year term, how did Alan Greenspan serve 19 years on the Board of Governors?

The members of Federal Reserve district bank boards of directors appointed by the Board of Governors are known as

Which groups were opposed to the Bank of the United States?

What are the roles of Federal Reserve district banks?

How are the operations of the Federal Reserve financed?

The national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the

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

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

What new authority did the ECB receive in 2012?

Which of the following is the mandate of the European Central Bank?

Which of the following is NOT a role of Federal Reserve Banks?

How does the Fed reach its target for the federal funds rate?

The Depository Institutions Deregulation and Monetary Control Act of 1980

Which of the following statements is correct?

Who organized the Bank of the United States?

The movement to set up a central bank in the United States was spurred by the financial panic that occurred in

Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?

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

Generally,

All of the following help make the Fed independent of the political process EXCEPT

Former Fed chair Alan Greenspan's use of ambiguous and vague language came to be known as:

If a member of the Board of Governors is limited to one 14-year term, how did Alan Greenspan serve 19 years on the Board of Governors?

The members of Federal Reserve district bank boards of directors appointed by the Board of Governors are known as

Which groups were opposed to the Bank of the United States?

What are the roles of Federal Reserve district banks?

How are the operations of the Federal Reserve financed?

The national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the

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