Question 1

Most of the Fed's earnings come from

Accepted Answer

A)  fees charged to financial institutions for check clearing. 
B)  interest on the securities it holds. 
C)  interest on discount loans. 
D)  congressional appropriations. 
A)  fees charged to financial institutions for check clearing. 
B)  interest on the securities it holds. 
C)  interest on discount loans. 
D)  congressional appropriations.

Question 2

Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?

Accepted Answer

A)  It required all banks to maintain reserve deposits with the Fed. 
B)  It gave member and nonmember banks equivalent access to discount loans. 
C)  It halted the decline in Fed membership. 
D)  It eliminated restrictions on interstate banking for member banks. 
A)  It required all banks to maintain reserve deposits with the Fed. 
B)  It gave member and nonmember banks equivalent access to discount loans. 
C)  It halted the decline in Fed membership. 
D)  It eliminated restrictions on interstate banking for member banks.

Question 3

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed's

Accepted Answer

The General Account Office was ordered t

Question 4

What is the primary objective of the Financial Stability Oversight Council?

Accepted Answer

The objective of the council i

Question 5

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 6

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 7

Which of the following is NOT considered one of the four principal 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 8

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 9

In the early post-war years,the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be

Accepted Answer

A)  recession. 
B)  inflation. 
C)  higher taxes. 
D)  lower taxes. 
A)  recession. 
B)  inflation. 
C)  higher taxes. 
D)  lower taxes.

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

The president of which Federal Reserve bank is always a voting member of the Federal Open Market Committee?

Accepted Answer

A)  Philadelphia 
B)  Boston 
C)  Chicago 
D)  New York 
A)  Philadelphia 
B)  Boston 
C)  Chicago 
D)  New York

Question 12

What is the main reason the Fed operates in a political arena?

Accepted Answer

A)  It lacks a constitutional mandate. 
B)  The members of the Board of Governors must run for reelection every fourteen years. 
C)  The members of the Board of Governors are typically prominent politicians. 
D)  It is under the direct control of Congress. 
A)  It lacks a constitutional mandate. 
B)  The members of the Board of Governors must run for reelection every fourteen years. 
C)  The members of the Board of Governors are typically prominent politicians. 
D)  It is under the direct control of Congress.

Question 13

Who are the members of the Financial Stability Oversight Council?

Accepted Answer

Members of the Financial Stabi

Question 14

Which of the following does not serve on the Governing Council of the European Central Bank?

Accepted Answer

A)  governors of the national central banks 
B)  members of the executive board 
C)  finance ministers of each country 
D)  chair of the executive board 
A)  governors of the national central banks 
B)  members of the executive board 
C)  finance ministers of each country 
D)  chair of the executive board

Question 15

In what ways is the Fed independent of the political process?

Accepted Answer

Board members are appointed for long,non

Question 16

What constitutes meaningful independence of a central bank?

Accepted Answer

The central bank must be able

Question 17

Which of the following statements is correct?

Accepted Answer

A)  The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money. 
B)  The Fed is dependent on the annual appropriations it receives from Congress. 
C)  The Fed's profits are substantial, even when compared to the largest U.S. corporations. 
D)  At one time the Fed made substantial profits, but falling interest rates have greatly reduced them. 
A)  The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money. 
B)  The Fed is dependent on the annual appropriations it receives from Congress. 
C)  The Fed's profits are substantial, even when compared to the largest U.S. corporations. 
D)  At one time the Fed made substantial profits, but falling interest rates have greatly reduced them.

Question 18

Which of the following countries does not have an official inflation target?

Accepted Answer

A)  Canada 
B)  United Kingdom 
C)  New Zealand 
D)  United States 
A)  Canada 
B)  United Kingdom 
C)  New Zealand 
D)  United States

Question 19

How are the operations of the Federal Reserve financed?

Accepted Answer

Most of the Fed's earnings come from int

Question 20

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.

Most of the Fed's earnings come from

Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed's

What is the primary objective of the Financial Stability Oversight Council?

Who owns the Federal Reserve banks?

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

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

Generally,

In the early post-war years,the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be

Who sets the inflation target for the Bank of England?

The president of which Federal Reserve bank is always a voting member of the Federal Open Market Committee?

What is the main reason the Fed operates in a political arena?

Who are the members of the Financial Stability Oversight Council?

Which of the following does not serve on the Governing Council of the European Central Bank?

In what ways is the Fed independent of the political process?

What constitutes meaningful independence of a central bank?

Which of the following statements is correct?

Which of the following countries does not have an official inflation target?

How are the operations of the Federal Reserve financed?

Which best describes the Federal Reserve district banks?

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

Most of the Fed's earnings come from

Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed's

What is the primary objective of the Financial Stability Oversight Council?

Who owns the Federal Reserve banks?

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

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

Generally,

In the early post-war years,the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be

Who sets the inflation target for the Bank of England?

The president of which Federal Reserve bank is always a voting member of the Federal Open Market Committee?

What is the main reason the Fed operates in a political arena?

Who are the members of the Financial Stability Oversight Council?

Which of the following does not serve on the Governing Council of the European Central Bank?

In what ways is the Fed independent of the political process?

What constitutes meaningful independence of a central bank?

Which of the following statements is correct?

Which of the following countries does not have an official inflation target?

How are the operations of the Federal Reserve financed?

Which best describes the Federal Reserve district banks?

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