Exam 4: Federal Reserve System

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____________________________ requires disclosure of the finance charge and the annual percentage rate of credit along with certain other costs and terms to permit consumers to compare the prices of credit from differing sources.

(Multiple Choice)
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The Federal Reserve System consists of all of the following components EXCEPT:

(Multiple Choice)
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The least used monetary policy instrument used by the Fed is

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The seven members of the Federal Reserve Board of Governors are responsible for the establishment of monetary policy.

(True/False)
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The basic policy instruments that the Fed uses to execute monetary policy include all of the following EXCEPT

(Multiple Choice)
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The Board of Governors of the Federal Reserve System:

(Multiple Choice)
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The interest rate that a bank must pay to borrow from its regional federal reserve bank is called

(Multiple Choice)
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Federal Reserve actions that meet the credit needs of individuals and institutions, clearing checks, and supporting depository institutions are called accommodative activities.

(True/False)
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Although it enjoys substantial independence in its operations, the appointive power of the president and the ability of Congress to alter its structure make the ______________ a dependent political structure and one of the most powerful monetary organizations in the world.

(Multiple Choice)
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__________________ become the most important and effective means of monetary and credit control.

(Multiple Choice)
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In addition to the 12 Reserve Banks, 25 branch banks have been established. Too specific, little importance

(True/False)
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The Federal Open Market committee:

(Multiple Choice)
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The two routes of check clearance include the _____________ settlement, in which the transaction takes place entirely within a single Federal Reserve district, and the _____________ settlement, in which there are relationships between banks of two Federal Reserve districts.

(Multiple Choice)
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The Fed Board of Governors:

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By exercising its influence on the monetary system of the United States, the Fed performs a unique and important function: promoting economic stability.

(True/False)
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The principal examining activity of the Federal Reserve System is directed to:

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

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Discount policy is still a major instrument of monetary policy.

(True/False)
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A central bank is required to hold reserves, and it has stockholders and a board of directors.

(True/False)
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The Fed prefers to change reserve requirements rather than to use open market operations.

(True/False)
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