Question 1

The accommodative activities of the Federal Reserve System are:

Accepted Answer

A) clearing checks 
B) meeting the credit needs of individuals and institutions 
C) supporting depository institutions 
D) all of the above 
A) clearing checks 
B) meeting the credit needs of individuals and institutions 
C) supporting depository institutions 
D) all of the above

Question 2

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 3

The Federal Reserve System consists of all of the following components EXCEPT:

Accepted Answer

A) Federal Reserve District Banks 
B) Board of Governors 
C) Federal Open Market Committee 
D) all of the above 
A) Federal Reserve District Banks 
B) Board of Governors 
C) Federal Open Market Committee 
D) all of the above

Question 4

The Federal Reserve Advisory Council provides advice and general information to the Secretary of the Treasury.

Accepted Answer

A) True 
 B)False

Question 5

Banks with large transaction account balances hold the same percentage of reserves as all other banks.

Accepted Answer

A) True 
 B)False

Question 6

All commercial banks are members of the Fed.

Accepted Answer

A) True 
 B)False

Question 7

The accommodative actions of the Fed includes buying treasury securities.

Accepted Answer

A) True 
 B)False

Question 8

Open market operations involve the buying and selling of U.S.government securities.

Accepted Answer

A) True 
 B)False

Question 9

The purpose of Regulation Z is to:

Accepted Answer

A) make consumers aware of the costs of alternative forms of credit 
B) prohibit garnishment 
C) encourage depository institutions to help meet the credit needs of their communities for housing and other purposes 
D) regulate the overseas activities of member banks of the Federal Reserve System 
A) make consumers aware of the costs of alternative forms of credit 
B) prohibit garnishment 
C) encourage depository institutions to help meet the credit needs of their communities for housing and other purposes 
D) regulate the overseas activities of member banks of the Federal Reserve System

Question 10

____________________________ sets up a procedure for the prompt correction of errors on a revolving charge account and prevents damage to credit ratings while a dispute is being settled.

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

Question 11

____________________________ authorizes the Federal Reserve Board to identify 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

Question 12

It is generally agreed by the public that the Federal Reserve System:

Accepted Answer

A) should not engage in international exchange controls 
B) carries out its functions reasonably well 
C) is distrusted by business as well as by banking interests 
D) should be under the control of the U.S.Treasury 
A) should not engage in international exchange controls 
B) carries out its functions reasonably well 
C) is distrusted by business as well as by banking interests 
D) should be under the control of the U.S.Treasury

Question 13

The 1980 Depository Institutions Deregulation and Monetary Control Act applies different reserve requirements to different banks based on their charters.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not 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) setting bank profitability ratios, 
E) none of the above 
A) setting reserve requirements, 
B) altering the discount rate, 
C) through federal open market operations, 
D) setting bank profitability ratios, 
E) none of the above

Question 15

The Federal Reserve Banks are owned by:

Accepted Answer

A) commercial banks 
B) the U.S.Treasury 
C) national member banks of the Federal Reserve System 
D) member banks of the Federal Reserve System 
A) commercial banks 
B) the U.S.Treasury 
C) national member banks of the Federal Reserve System 
D) member banks of the Federal Reserve System

Question 16

The Board of Governors of the Federal Reserve establishes monetary policy by:

Accepted Answer

A) setting reserve requirements, altering the prime rate, and through federal open market operations. 
B) setting reserve requirements, altering the discount rate, and through federal open market operations. 
C) setting reserve requirements, altering the discount rate, and through international currency transactions. 
D) setting bank profitability ratios, altering the discount rate, and through federal open market operations. 
E) none of the above 
A) setting reserve requirements, altering the prime rate, and through federal open market operations. 
B) setting reserve requirements, altering the discount rate, and through federal open market operations. 
C) setting reserve requirements, altering the discount rate, and through international currency transactions. 
D) setting bank profitability ratios, altering the discount rate, and through federal open market operations. 
E) none of the above

Question 17

The Federal Open Market Committee:

Accepted Answer

A) is comprised of members of the Federal Reserve board and representatives of all Federal Reserve Banks 
B) came into being at the time the Federal Reserve System was created 
C) is made up of the presidents of the 12 Federal Reserve Banks 
D) was created under a provision of the Banking Act of 1935 
A) is comprised of members of the Federal Reserve board and representatives of all Federal Reserve Banks 
B) came into being at the time the Federal Reserve System was created 
C) is made up of the presidents of the 12 Federal Reserve Banks 
D) was created under a provision of the Banking Act of 1935

Question 18

The ___________________ conducts monetary policy for the twelve European countries that formed the European Monetary Union and adopted the euro as their common currency at the beginning of 1999.

Accepted Answer

A) Bank of England 
B) European Central Bank 
C) Bank of Europe 
D) Bank of Switzerland 
E) none of the above 
A) Bank of England 
B) European Central Bank 
C) Bank of Europe 
D) Bank of Switzerland 
E) none of the above

Question 19

The Federal Reserve has no power to regulate the overseas activities of member banks and bank holding companies.

Accepted Answer

A) True 
 B)False

Question 20

When reserves are added to the banking system, depository institutions may expand their lending but are not forced to do so.

Accepted Answer

A) True 
 B)False

The accommodative activities of the Federal Reserve System are:

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

The Federal Reserve System consists of all of the following components EXCEPT:

The Federal Reserve Advisory Council provides advice and general information to the Secretary of the Treasury.

Banks with large transaction account balances hold the same percentage of reserves as all other banks.

All commercial banks are members of the Fed.

The accommodative actions of the Fed includes buying treasury securities.

Open market operations involve the buying and selling of U.S.government securities.

The purpose of Regulation Z is to:

____________________________ sets up a procedure for the prompt correction of errors on a revolving charge account and prevents damage to credit ratings while a dispute is being settled.

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

It is generally agreed by the public that the Federal Reserve System:

The 1980 Depository Institutions Deregulation and Monetary Control Act applies different reserve requirements to different banks based on their charters.

Which of the following is not a method by which the Federal Reserve establishes monetary policy?

The Federal Reserve Banks are owned by:

The Board of Governors of the Federal Reserve establishes monetary policy by:

The Federal Open Market Committee:

The ___________________ conducts monetary policy for the twelve European countries that formed the European Monetary Union and adopted the euro as their common currency at the beginning of 1999.

The Federal Reserve has no power to regulate the overseas activities of member banks and bank holding companies.

When reserves are added to the banking system, depository institutions may expand their lending but are not forced to do so.

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

The accommodative activities of the Federal Reserve System are:

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

The Federal Reserve System consists of all of the following components EXCEPT:

The Federal Reserve Advisory Council provides advice and general information to the Secretary of the Treasury.

Banks with large transaction account balances hold the same percentage of reserves as all other banks.

All commercial banks are members of the Fed.

The accommodative actions of the Fed includes buying treasury securities.

Open market operations involve the buying and selling of U.S.government securities.

The purpose of Regulation Z is to:

____________________________ sets up a procedure for the prompt correction of errors on a revolving charge account and prevents damage to credit ratings while a dispute is being settled.

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

It is generally agreed by the public that the Federal Reserve System:

The 1980 Depository Institutions Deregulation and Monetary Control Act applies different reserve requirements to different banks based on their charters.

Which of the following is not a method by which the Federal Reserve establishes monetary policy?

The Federal Reserve Banks are owned by:

The Board of Governors of the Federal Reserve establishes monetary policy by:

The Federal Open Market Committee:

The ___________________ conducts monetary policy for the twelve European countries that formed the European Monetary Union and adopted the euro as their common currency at the beginning of 1999.

The Federal Reserve has no power to regulate the overseas activities of member banks and bank holding companies.

When reserves are added to the banking system, depository institutions may expand their lending but are not forced to do so.

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