Question 1

The facts show that the political business cycle theory

Accepted Answer

A)  does a good job of explaining monetary policy during presidential election years. 
B)  is unable to explain monetary policy during presidential election years. 
C)  doesn't generally support the political business cycle theory. 
D)  explains monetary policy best during years in which the President is running for reelection. 
A)  does a good job of explaining monetary policy during presidential election years. 
B)  is unable to explain monetary policy during presidential election years. 
C)  doesn't generally support the political business cycle theory. 
D)  explains monetary policy best during years in which the President is running for reelection.

Question 2

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 3

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 4

The public interest view of Fed motivation holds that the Fed acts in the interest of

Accepted Answer

A)  the general public. 
B)  banks. 
C)  Congress. 
D)  itself. 
A)  the general public. 
B)  banks. 
C)  Congress. 
D)  itself.

Question 5

What is the length of a term for the Chairman of the Board of Governors?

Accepted Answer

A)  One year 
B)  Four years 
C)  14 years 
D)  28 years 
A)  One year 
B)  Four years 
C)  14 years 
D)  28 years

Question 6

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 7

The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture 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 8

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

Accepted Answer

A)  between bankers and business interests 
B)  among states and regions 
C)  between importers and exporters 
D)  between government and the private sector 
A)  between bankers and business interests 
B)  among states and regions 
C)  between importers and exporters 
D)  between government and the private sector

Question 9

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 10

In January 2006,President Bush appointed which of the following to be chair of the Federal Reserve?

Accepted Answer

A)  Greenspan 
B)  Bernanke 
C)  Fukui 
D)  Trichet 
A)  Greenspan 
B)  Bernanke 
C)  Fukui 
D)  Trichet

Question 11

What percentage of all banks in the United States belong to the Federal Reserve System?

Accepted Answer

A)  5% 
B)  33% 
C)  75% 
D)  90% 
A)  5% 
B)  33% 
C)  75% 
D)  90%

Question 12

Apart from the United States,in countries where central bank board members serve fixed terms of office,

Accepted Answer

A)  none have terms as long as fourteen years. 
B)  many serve for life or good behavior. 
C)  all have terms longer than fourteen years. 
D)  the head of the central bank rarely has a term longer than one year. 
A)  none have terms as long as fourteen years. 
B)  many serve for life or good behavior. 
C)  all have terms longer than fourteen years. 
D)  the head of the central bank rarely has a term longer than one year.

Question 13

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 14

The Chairman of the Federal Open Market Committee is also

Accepted Answer

A)  the president of the Federal Reserve Bank of New York. 
B)  the chairman of the Securities and Exchange Commission. 
C)  the chairman of the Federal Deposit Insurance Corporation. 
D)  the chairman of the Board of Governors. 
A)  the president of the Federal Reserve Bank of New York. 
B)  the chairman of the Securities and Exchange Commission. 
C)  the chairman of the Federal Deposit Insurance Corporation. 
D)  the chairman of the Board of Governors.

Question 15

The Banking Acts of 1933 and 1935

Accepted Answer

A)  established the Federal Reserve System. 
B)  increased central control of the Federal Reserve System. 
C)  eliminated the authority of the Board of Governors to set reserve requirements. 
D)  made the Secretary of the Treasury a member of the Board of Governors. 
A)  established the Federal Reserve System. 
B)  increased central control of the Federal Reserve System. 
C)  eliminated the authority of the Board of Governors to set reserve requirements. 
D)  made the Secretary of the Treasury a member of the Board of Governors.

Question 16

Which of the following statements is correct?

Accepted Answer

A)  The Fed is fully insulated from external pressures due to the long terms that members of the Board of Governors serve. 
B)  The Fed is fully insulated from external pressures because it does not need to go through the normal congressional appropriations process. 
C)  The Fed is fully insulated from external pressures because it has a constitutional mandate. 
D)  The Fed is only partially insulated from external pressures. 
A)  The Fed is fully insulated from external pressures due to the long terms that members of the Board of Governors serve. 
B)  The Fed is fully insulated from external pressures because it does not need to go through the normal congressional appropriations process. 
C)  The Fed is fully insulated from external pressures because it has a constitutional mandate. 
D)  The Fed is only partially insulated from external pressures.

Question 17

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 18

Which of the following appears to be evidence against the public interest view of the Fed's motivation?

Accepted Answer

A)  The conflict with the Treasury over interest rate fixing during World War II. 
B)  The failure of the Fed to emphasize the goal of price stability. 
C)  The unwillingness of the Fed to turn over its excess profits to the Treasury. 
D)  The independence of Fed chairmen from the authority of the President. 
A)  The conflict with the Treasury over interest rate fixing during World War II. 
B)  The failure of the Fed to emphasize the goal of price stability. 
C)  The unwillingness of the Fed to turn over its excess profits to the Treasury. 
D)  The independence of Fed chairmen from the authority of the President.

Question 19

Which of the following men has NOT served as Chairman of the Board of Governors?

Accepted Answer

A)  Milton Friedman 
B)  Arthur Burns 
C)  Paul Volcker 
D)  Alan Greenspan 
A)  Milton Friedman 
B)  Arthur Burns 
C)  Paul Volcker 
D)  Alan Greenspan

Question 20

What was the original intent of the Federal Reserve Act of 1913?

Accepted Answer

The original intent was to cre

The facts show that the political business cycle theory

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

Who organized the Bank of the United States?

The public interest view of Fed motivation holds that the Fed acts in the interest of

What is the length of a term for the Chairman of the Board of Governors?

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

The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture are known as

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

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

In January 2006,President Bush appointed which of the following to be chair of the Federal Reserve?

What percentage of all banks in the United States belong to the Federal Reserve System?

Apart from the United States,in countries where central bank board members serve fixed terms of office,

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

The Chairman of the Federal Open Market Committee is also

The Banking Acts of 1933 and 1935

Which of the following statements is correct?

Which of the following statements is correct?

Which of the following appears to be evidence against the public interest view of the Fed's motivation?

Which of the following men has NOT served as Chairman of the Board of Governors?

What was the original intent of the Federal Reserve Act of 1913?

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

The facts show that the political business cycle theory

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

Who organized the Bank of the United States?

The public interest view of Fed motivation holds that the Fed acts in the interest of

What is the length of a term for the Chairman of the Board of Governors?

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

The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture are known as

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

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

In January 2006,President Bush appointed which of the following to be chair of the Federal Reserve?

What percentage of all banks in the United States belong to the Federal Reserve System?

Apart from the United States,in countries where central bank board members serve fixed terms of office,

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

The Chairman of the Federal Open Market Committee is also

The Banking Acts of 1933 and 1935

Which of the following statements is correct?

Which of the following statements is correct?

Which of the following appears to be evidence against the public interest view of the Fed's motivation?

Which of the following men has NOT served as Chairman of the Board of Governors?

What was the original intent of the Federal Reserve Act of 1913?

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