Question 1

At any given time,the voting members of the Federal Open Market Committee include

Accepted Answer

A) five of the presidents of the regional Federal Reserve banks. 
B) the president of the Federal Reserve Bank of New York. 
C) the seven members of the Board of Governors. 
D) All of the above are correct. 
A) five of the presidents of the regional Federal Reserve banks. 
B) the president of the Federal Reserve Bank of New York. 
C) the seven members of the Board of Governors. 
D) All of the above are correct.

Question 2

Over one time horizon or another,Fed policy decisions influence

Accepted Answer

A) inflation and employment. 
B) inflation but not employment. 
C) employment but not inflation. 
D) neither inflation nor employment. 
A) inflation and employment. 
B) inflation but not employment. 
C) employment but not inflation. 
D) neither inflation nor employment.

Question 3

The Fed can influence unemployment in

Accepted Answer

A) the short run and in the long run. 
B) the short run,but not in the long run. 
C) the long run,but not in the short run. 
D) neither the short nor the long run. 
A) the short run and in the long run. 
B) the short run,but not in the long run. 
C) the long run,but not in the short run. 
D) neither the short nor the long run.

Question 4

Which of the following is correct?

Accepted Answer

A) The Federal Reserve has 14 regional banks.The Board of Governors has 12 members who serve 7-year terms. 
B) The Federal Reserve has 14 regional banks.The Board of Governors has 7 members who serve 14-year terms. 
C) The Federal Reserve has 12 regional banks.The Board of Governors has 12 members who serve 7-year terms. 
D) The Federal Reserve has 12 regional banks.The Board of Governors has 7 members who serve 14-year terms. 
A) The Federal Reserve has 14 regional banks.The Board of Governors has 12 members who serve 7-year terms. 
B) The Federal Reserve has 14 regional banks.The Board of Governors has 7 members who serve 14-year terms. 
C) The Federal Reserve has 12 regional banks.The Board of Governors has 12 members who serve 7-year terms. 
D) The Federal Reserve has 12 regional banks.The Board of Governors has 7 members who serve 14-year terms.

Question 5

At any meeting of the Federal Open Market Committee,that committee's voting members consist of

Accepted Answer

A) 5 Federal Reserve Regional Bank Presidents and all the members of the Board of Governors. 
B) 5 Federal Reserve Regional Bank Presidents and 5 members of the Board of Governors. 
C) 12 Federal Reserve Regional Bank Presidents and all the members of the Board of Governors. 
D) 12 Federal Reserve Regional Bank Presidents and 5 members of the Board of Governors. 
A) 5 Federal Reserve Regional Bank Presidents and all the members of the Board of Governors. 
B) 5 Federal Reserve Regional Bank Presidents and 5 members of the Board of Governors. 
C) 12 Federal Reserve Regional Bank Presidents and all the members of the Board of Governors. 
D) 12 Federal Reserve Regional Bank Presidents and 5 members of the Board of Governors.

Question 6

The agency responsible for regulating the U.S.monetary system is the

Accepted Answer

A) U.S.Treasury 
B) Federal Reserve 
C) Department of Justice 
D) Federal Trade Commission 
A) U.S.Treasury 
B) Federal Reserve 
C) Department of Justice 
D) Federal Trade Commission

Question 7

Which of the following is correct concerning the FOMC?

Accepted Answer

A) the members of the Board of Governors have the majority of the votes 
B) the New York Federal Reserve Bank District President is always a voting member 
C) all Federal Reserve Bank presidents attend the meetings 
D) All of the above are correct. 
A) the members of the Board of Governors have the majority of the votes 
B) the New York Federal Reserve Bank District President is always a voting member 
C) all Federal Reserve Bank presidents attend the meetings 
D) All of the above are correct.

Question 8

An open-market purchase

Accepted Answer

A) increases the number of dollars and the number of bonds in the hands of the public. 
B) increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public. 
C) decreases the number of dollars and the number of bonds in the hands of the public. 
D) decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public. 
A) increases the number of dollars and the number of bonds in the hands of the public. 
B) increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public. 
C) decreases the number of dollars and the number of bonds in the hands of the public. 
D) decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.

Question 9

The Board of Governors

Accepted Answer

A) is chaired by the U.S.Secretary of the Treasury. 
B) members are elected by the U.S.public. 
C) has 7 members. 
D) All of the above are correct. 
A) is chaired by the U.S.Secretary of the Treasury. 
B) members are elected by the U.S.public. 
C) has 7 members. 
D) All of the above are correct.

Question 10

Who was appointed Chair of the Board of Governors in 2014 by President Barack Obama?

Accepted Answer

A) Ben Bernanke 
B) Christina Romer 
C) Larry Summers 
D) Janet Yellen 
A) Ben Bernanke 
B) Christina Romer 
C) Larry Summers 
D) Janet Yellen

Question 11

The Fed has the power to increase or decrease the number of dollars in the economy through the decisions of

Accepted Answer

A) the Board of Governors. 
B) the FOMC. 
C) the regional Federal Reserve Bank presidents. 
D) the U.S.Treasury. 
A) the Board of Governors. 
B) the FOMC. 
C) the regional Federal Reserve Bank presidents. 
D) the U.S.Treasury.

Question 12

The Federal Reserve

Accepted Answer

A) was created in 1913. 
B) is the U.S.'s central bank. 
C) has other duties in addition to controlling the money supply. 
D) All of the above are correct. 
A) was created in 1913. 
B) is the U.S.'s central bank. 
C) has other duties in addition to controlling the money supply. 
D) All of the above are correct.

Question 13

The president of each regional Federal Reserve Bank is appointed by

Accepted Answer

A) the U.S.president with the approval of the Senate. 
B) the Board of Governors. 
C) the voting members of the Federal Open Market Committee. 
D) the board of directors of that regional Federal Reserve Bank. 
A) the U.S.president with the approval of the Senate. 
B) the Board of Governors. 
C) the voting members of the Federal Open Market Committee. 
D) the board of directors of that regional Federal Reserve Bank.

Question 14

A central bank's setting (or altering)of the money supply is known as

Accepted Answer

A) open-market operation. 
B) interest rate policy. 
C) monetary policy. 
D) employment policy. 
A) open-market operation. 
B) interest rate policy. 
C) monetary policy. 
D) employment policy.

Question 15

FOMC voting rights

Accepted Answer

A) are given to all twelve regional bank presidents. 
B) ​rotate among the twelve regional bank presidents. 
C) ​rotate among the twelve regional bank presidents,except the president of the New York Fed,who always gets a vote. 
D) ​are all given to the president of the New York Fed,since all of the Fed's bond sales and purchases are conducted at the New York Fed trading desk. 
A) are given to all twelve regional bank presidents. 
B) ​rotate among the twelve regional bank presidents. 
C) ​rotate among the twelve regional bank presidents,except the president of the New York Fed,who always gets a vote. 
D) ​are all given to the president of the New York Fed,since all of the Fed's bond sales and purchases are conducted at the New York Fed trading desk.

Question 16

The agency responsible for regulating the money supply in the United States is

Accepted Answer

A) the Comptroller of the Currency. 
B) the U.S.Treasury. 
C) the Federal Reserve. 
D) the U.S.Bank. 
A) the Comptroller of the Currency. 
B) the U.S.Treasury. 
C) the Federal Reserve. 
D) the U.S.Bank.

Question 17

Which of the following does the Federal Reserve not do?

Accepted Answer

A) It controls the supply of money. 
B) It acts as a lender of last resort to banks. 
C) It makes loans to any qualified business that requests one. 
D) It tries to ensure the health of the banking system. 
A) It controls the supply of money. 
B) It acts as a lender of last resort to banks. 
C) It makes loans to any qualified business that requests one. 
D) It tries to ensure the health of the banking system.

Question 18

All of the presidents of the regional Federal Reserve banks

Accepted Answer

A) attend each FOMC meeting. 
B) have voting rights at each FOMC meeting. 
C) are appointed by the president of the U.S.and confirmed by the U.S.Senate. 
D) All of the above are correct. 
A) attend each FOMC meeting. 
B) have voting rights at each FOMC meeting. 
C) are appointed by the president of the U.S.and confirmed by the U.S.Senate. 
D) All of the above are correct.

Question 19

The members of the Federal Reserve's Board of Governors

Accepted Answer

A) are elected to office by the public every fourteen years. 
B) are nominated by the U.S.Senate banking committee and confirmed by the U.S.house of representatives. 
C) are elected by bankers in each Federal Reserve Region. 
D) are appointed by the president of the U.S.and confirmed by the U.S.Senate. 
A) are elected to office by the public every fourteen years. 
B) are nominated by the U.S.Senate banking committee and confirmed by the U.S.house of representatives. 
C) are elected by bankers in each Federal Reserve Region. 
D) are appointed by the president of the U.S.and confirmed by the U.S.Senate.

Question 20

If the Federal Open Market Committee decides to decrease the money supply,it will

Accepted Answer

A) sell government bonds. 
B) purchase corporate bonds. 
C) purchase government bonds. 
D) reduce interest rates. 
A) sell government bonds. 
B) purchase corporate bonds. 
C) purchase government bonds. 
D) reduce interest rates.

Exam 16: The Monetary System: The Federal Reserve System

At any given time,the voting members of the Federal Open Market Committee include

Over one time horizon or another,Fed policy decisions influence

The Fed can influence unemployment in

Which of the following is correct?

At any meeting of the Federal Open Market Committee,that committee's voting members consist of

The agency responsible for regulating the U.S.monetary system is the

Which of the following is correct concerning the FOMC?

An open-market purchase

The Board of Governors

Who was appointed Chair of the Board of Governors in 2014 by President Barack Obama?

The Fed has the power to increase or decrease the number of dollars in the economy through the decisions of

The Federal Reserve

The president of each regional Federal Reserve Bank is appointed by

A central bank's setting (or altering)of the money supply is known as

FOMC voting rights

The agency responsible for regulating the money supply in the United States is

Which of the following does the Federal Reserve not do?

All of the presidents of the regional Federal Reserve banks

The members of the Federal Reserve's Board of Governors

If the Federal Open Market Committee decides to decrease the money supply,it will

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion