Question 1

The main object of FOMC voting is to set the target

Accepted Answer

A)  inflation rate.
B)  federal funds rate.
C)  unemployment rate.
D)  foreign exchange rate.

Question 2

?Compiling information on basic economic variables such as the unemployment rate and inflation rate is referred to as _____among Fed members.

Accepted Answer

A)  ?code­halo analytics
B)  ?up­and­down economics
C)  ?real­time data mining
D)  ?economic sequencing

Question 3

The discount rate is the

Accepted Answer

A)  targeted inflation rate for an economy.
B)  ongoing taxation rate in an economy.
C)  interest rate that the Fed charges on the loans it makes.
D)  nominal interest rate charged by financial intermediaries when they advance loans.

Question 4

The directors of a Federal Reserve Bank include

Accepted Answer

A)  three class A directors, who are bankers and are chosen by member banks; three class B directors, who are business leaders and are also chosen by member banks; and three class C directors, who are public-interest directors and are chosen by the Board of Governors.
B)  three class A directors, who are bankers and are chosen by member banks; three class B directors, who are politicians and are also chosen by member banks; and three class C directors, who are public-interest directors and are chosen by the Board of Governors.
C)  three class A directors, who are bankers and are chosen by public voting; three class B directors, who are politicians and are also chosen by member banks; and three class C directors, who are public-interest directors and are chosen by the Board of Governors.
D)  three class A directors, who are bankers and are chosen by member banks and three class B directors, who are business leaders and are also chosen by public voting.

Question 5

In which of the following cities is a Federal Reserve Bank NOT located

Accepted Answer

A)  Richmond.
B)  Denver.
C)  Kansas City.
D)  St.Louis.

Question 6

The Federal Reserve publication that discusses forecasts for the economy is known as the

Accepted Answer

A)  Redbook.
B)  Beigebook.
C)  Bluebook.
D)  Greenbook.

Question 7

In 2006, Chairman Greenspan left the Fed because

Accepted Answer

A)  President Bush wanted him to resign.
B)  he reached mandatory retirement age.
C)  his term as Governor expired.
D)  his term as Chairman expired.

Question 8

Which of the following statements is true?

Accepted Answer

A)  The Fed does not need to rely on the Government for its operating funds.
B)  Open market operations can be used by the Fed only to tighten monetary policy and not to ease it.
C)  The Board of Governors of the Fed is headed by the President of the United States.
D)  The operations of the Fed are deeply dependent on the actions of the ruling political power.

Question 9

A transaction in which the Fed agrees to buy a security one day and sell it back the next day is referred to as a(n)

Accepted Answer

A)  overnight securitization operation.
B)  repurchase agreement.
C)  legal tender.
D)  rebate sale.

Question 10

Federal Reserve Banks mostly pay for their central banking operations through

Accepted Answer

A)  government tax revenue.
B)  interest on the securities they own.
C)  fees charged to banks that use their services.
D)  dividends paid by local banks.

Question 11

The main advisors of the Chairman of the Federal Reserve Board of Governors are

Accepted Answer

A)  private economists hired as consultants.
B)  the Council of Economic Advisors.
C)  the U.S.Treasury Department.
D)  the directors of the three staff divisions of the Board.

Question 12

When a central bank is not independent, the main economic variable that is affected is

Accepted Answer

A)  unemployment.
B)  output growth.
C)  inflation.
D)  consumption spending.

Question 13

Of the nine directors of each Federal Reserve Bank, are elected by member banks.

Accepted Answer

A)  zero
B)  three
C)  six
D)  nine

Question 14

Each of the following helps the Federal Reserve to be independent of the federal government except

Accepted Answer

A)  the fourteen-year terms of the governors.
B)  the establishment of the Fed in the Constitution.
C)  the staggered terms of the governors.
D)  the independence of the Fed's income.

Question 15

In the Federal Open Market Committee,

Accepted Answer

A)  the Federal Reserve Bank of Kansas City always votes.
B)  the Federal Reserve Bank of Washington always votes.
C)  the Federal Reserve Bank of San Francisco always votes.
D)  the Federal Reserve Bank of New York always votes.

Question 16

The Open Market Desk is located at

Accepted Answer

A)  the Federal Reserve Bank of Boston.
B)  the Federal Reserve Bank of Philadelphia.
C)  the Federal Reserve Bank of New York.
D)  the Federal Reserve Bank of Chicago.

Question 17

There are_____ Federal Reserve Banks located around the United States.

Accepted Answer

A)  seven
B)  ten
C)  twelve
D)  fifteen

Question 18

When the Fed engages in an overnight repo

Accepted Answer

A)  a bank agrees to hold a certain amount of clearing balances at the Fed.
B)  a secondary government securities dealer agrees to buy a security from the Fed one day and sell it back the next day.
C)  a primary government securities dealer agrees to sell a security to the Fed one day and buy it back the next day.
D)  The Fed repossesses property that a bank owns as punishment for the bank's failure to pay off a discount loan.

Question 19

Open-market operations are purchases and sales of

Accepted Answer

A)  government securities in the secondary market.
B)  government securities in the primary market.
C)  corporate bonds in the secondary market.
D)  corporate bonds in the primary market.

Exam 15: The Federal Reserve System

When a central bank is not independent, the main economic variable that is affected is

Correct Answer
verified

Of the nine directors of each Federal Reserve Bank, are elected by member banks.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
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The main object of FOMC voting is to set the target

Correct Answer
verified

Open-market operations are purchases and sales of

Correct Answer
verified

Federal Reserve Banks mostly pay for their central banking operations through

Correct Answer
verified

A transaction in which the Fed agrees to buy a security one day and sell it back the next day is referred to as a(n)

Correct Answer
verified

In which of the following cities is a Federal Reserve Bank NOT located

Correct Answer
verified

?Compiling information on basic economic variables such as the unemployment rate and inflation rate is referred to as _____among Fed members.

Correct Answer
verified

In 2006, Chairman Greenspan left the Fed because

Correct Answer
verified

The directors of a Federal Reserve Bank include

Correct Answer
verified

The main advisors of the Chairman of the Federal Reserve Board of Governors are

Correct Answer
verified

The discount rate is the

Correct Answer
verified

There are_____ Federal Reserve Banks located around the United States.

Correct Answer
verified

The Federal Reserve publication that discusses forecasts for the economy is known as the

Correct Answer
verified

When the Fed engages in an overnight repo

Correct Answer
verified

Each of the following helps the Federal Reserve to be independent of the federal government except

Correct Answer
verified

In the Federal Open Market Committee,

Correct Answer
verified

The Open Market Desk is located at

Correct Answer
verified

Exam 15: The Federal Reserve System

When a central bank is not independent, the main economic variable that is affected is

Correct AnswerverifiedShow Answer

Of the nine directors of each Federal Reserve Bank, are elected by member banks.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

The main object of FOMC voting is to set the target

Correct AnswerverifiedShow Answer

Open-market operations are purchases and sales of

Correct AnswerverifiedShow Answer

Federal Reserve Banks mostly pay for their central banking operations through

Correct AnswerverifiedShow Answer

A transaction in which the Fed agrees to buy a security one day and sell it back the next day is referred to as a(n)

Correct AnswerverifiedShow Answer

In which of the following cities is a Federal Reserve Bank NOT located

Correct AnswerverifiedShow Answer

?Compiling information on basic economic variables such as the unemployment rate and inflation rate is referred to as _____among Fed members.

Correct AnswerverifiedShow Answer

In 2006, Chairman Greenspan left the Fed because

Correct AnswerverifiedShow Answer

The directors of a Federal Reserve Bank include

Correct AnswerverifiedShow Answer

The main advisors of the Chairman of the Federal Reserve Board of Governors are

Correct AnswerverifiedShow Answer

The discount rate is the

Correct AnswerverifiedShow Answer

There are_____ Federal Reserve Banks located around the United States.

Correct AnswerverifiedShow Answer

The Federal Reserve publication that discusses forecasts for the economy is known as the

Correct AnswerverifiedShow Answer

When the Fed engages in an overnight repo

Correct AnswerverifiedShow Answer

Each of the following helps the Federal Reserve to be independent of the federal government except

Correct AnswerverifiedShow Answer

In the Federal Open Market Committee,

Correct AnswerverifiedShow Answer

The Open Market Desk is located at

Correct AnswerverifiedShow Answer

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