Exam 4: Federal Reserve System

The Fed lending rate to depository institutions was consistently lower than the bank prime lending rate during the 19771980-1994 2009 period.

The United States was one of the earliest major-industrial nations to adopt a permanent system of central banking.

The only bank asset that can be counted as reserve is deposits with the Reserve Banks.

The National Banking Acts of 1863 and 1864 were:

414033.Federal Reserve actions that stimulate or repress the level of prices or economic activity are called defensive activities.

Bank holding companies are supervised and examined by:

Before the Federal Reserve System was created, a large part of the reserves of commercial banks was:

The Federal Open Market Committee:

The primary responsibility of the Fed is to formulate monetary policy which involves regulating the growth of the supply of money, and therefore regulating its cost and availability.

History generally supports the contention that under the guidance of Paul Volcker, a (n) ____________ Fed policy brought down the double-digit inflation of the 1970s and the early 1980s, and the Federal Open Market Committee consistently responded to his leadership.

The Federal Open Market Committee:

The dynamic actions of the Federal Reserve System:

During the past several years:

If excess reserves are near zero, then a reduction of a bank's reserves will cause the system to loosen credit.

Because of the National Banking Act, the volume of national bank notes depends on the government bond market rather than the seasonal or cyclical needs of the nation for currency.

The effect of an increase of required reserves by the Fed is:

Three essential needs of a well-operating financial system include all of the following EXCEPT:

Today the responsibilities of the Fed may be described as:

The seven-member board of the Federal Reserve that sets monetary policy is called

Today the responsibilities of the Fed may be described as: