Question 1

Monetary policy affects employment

Accepted Answer

A)  only in the long run.
B)  only in the short run.
C)  in both the long run and the short run.
D)  in neither the long run nor the short run.E) A) and B)
F) All of the above

Question 2

The Federal Reserve

Accepted Answer

A)  was created in 1836.
B)  serves as a lender of last resort.
C)  was created to facilitate the federal government's collection of taxes as well as its expenditures.
D)  All of the above are correct.E) A) and B)
F) C) and D) B

Question 3

When conducting an open-market sale,the Fed

Accepted Answer

A)  buys government bonds,and in so doing increases the money supply.
B)  buys government bonds,and in so doing decreases the money supply.
C)  sells government bonds,and in so doing increases the money supply.
D)  sells government bonds,and in so doing decreases the money supply.E) B) and C)
F) A) and D)

Question 4

Who can vote on Federal Open Market Committee decisions?

Accepted Answer

A)  all of the members of the Board of Governors and all of the Federal Reserve Bank presidents
B)  all of the members of the Board of Governors and some of the Federal Reserve Bank presidents
C)  some of the members of the Board of Governors and all of the Federal Reserve Bank presidents
D)  some of the members of the Board of Governors and some of the Federal Reserve Bank presidentsE) None of the above
F) A) and B)

Question 5

Which group within the Federal Reserve System meets to discuss changes in the economy and determine monetary policy?

Accepted Answer

A)  the Board of Governors
B)  the FOMC
C)  the regional Federal Reserve Bank presidents
D)  the Central Bank Policy CommissionE) All of the above
F) B) and C)

Question 6

The members of the Federal Reserve's Board of Governors

Accepted Answer

A)  are appointed by the president of the U.S.and confirmed by the U.S.Senate.
B)  serve six-year terms.
C)  are also the presidents of the regional Federal Reserve banks.
D)  share power equally,with no governor having any more influence or power than any other governor.E) A) and D)
F) C) and D)

Question 7

The Federal Open Market Committee meets approximately

Accepted Answer

A)  every three weeks
B)  every six weeks
C)  every 3 months
D)  every 6 months.E) A) and B)
F) B) and C)

Question 8

The Federal Reserve was created

Accepted Answer

A)  in 1913 by Congress
B)  as a result of the Great Depression
C)  according to the standards enforced by NATO
D)  by President KennedyE) A) and D)
F) A) and C)

Question 9

The New York Federal Reserve Bank

Accepted Answer

A)  president always gets to vote at the FOMC meetings.
B)  conducts open market transactions.
C)  is one of 12 regional Federal Reserve Banks.
D)  All of the above are correct.E) B) and D)
F) B) and C)

Question 10

Which of the following is not a reason the New York Federal Reserve Bank president always gets to vote at the Federal Open Market Committee meetings?

Accepted Answer

A)  New York is the traditional financial center of the U.S.economy.
B)  All Fed purchases and sales of bonds go through the New York Fed's trading desk.
C)  New York has higher population than other cities in the U.S.
D)  All of the above are reasons.E) A) and D)
F) C) and D)

Question 11

Economists call an institution designed to oversee the banking system and regulate the quantity of money in the economy

Accepted Answer

A)  a central bank.
B)  a charter bank.
C)  a national bank.
D)  a state bank.E) B) and C)
F) A) and C)

Question 12

Which of the following statements regarding the Federal Open Market Committee is correct?

Accepted Answer

A)  Only the five voting regional Fed presidents attend the meetings.
B)  All regional Fed presidents attend and vote at the meetings.
C)  All regional Fed presidents attend the meetings,but only five get to vote.
D)  Regional Fed presidents may neither attend nor vote the meetings.E) A) and B)
F) C) and D)

Question 13

Which of the following individuals serve a four-year term?

Accepted Answer

A)  the members of the Board of Governors
B)  the Chair of the Board of Governors
C)  the members of the FOMC
D)  All of the above are correct.E) A) and D)
F) B) and C)

Question 14

At the Federal Reserve,

Accepted Answer

A)  the nation's monetary and fiscal policies are made by the Federal Open Market Committee,which meets about every six weeks.
B)  the nation's monetary and fiscal policies are made by the Federal Open Market Committee,which meets twice a year.
C)  the nation's monetary policy is made by the Federal Open Market Committee,which meets about every six weeks.
D)  the nation's monetary policy is made by the Federal Open Market Committee,which meets twice a year.E) B) and D)
F) A) and D)

Question 15

Which of the following is not correct?

Accepted Answer

A)  The regional Federal Reserve Banks play a role in regulating banks and ensuring the health of the banking system.
B)  The President of the New York Federal Reserve Regional Bank always gets to vote on the decisions made by the Federal Open Market Committee.
C)  U.S.monetary policy is made by the Federal Open Market Committee.
D)  The Federal Open Market Committee meets every 12 weeks.E) C) and D)
F) All of the above D

Question 16

Which of the following groups is largely responsible for carrying out the Fed's tasks of regulating banks and ensuring the health of the financial system?

Accepted Answer

A)  FOMC
B)  the Board of Governors
C)  the New York Fed
D)  the regional Federal Reserve BanksE) C) and D)
F) A) and B)

Question 17

Which of the following institutions is a central bank?

Accepted Answer

A)  the Bank of Japan
B)  the Bank of England
C)  the Federal Reserve System
D)  All of the above are correct.E) A) and D)
F) B) and C)

Question 18

Which of the following is not a central bank?

Accepted Answer

A)  The Bank of England
B)  The Bank of Japan
C)  The Bank of America
D)  The Federal ReserveE) C) and D)
F) A) and C) C

Question 19

Which of the following entities actually executes open-market operations?

Accepted Answer

A)  the Board of Governors
B)  the New York Federal Reserve Bank
C)  the Federal Open Market Committee
D)  the Open Market Committees of the regional Federal Reserve BanksE) A) and B)
F) None of the above

Question 20

Which government body is primarily responsible for regulating banks and ensuring the health of the banking system?

Accepted Answer

A)  ​The U.S.Treasury
B)  Federal Deposit Insurance Corporation
C)  The Federal Reserve Board
D)  ​The regional Federal Reserve BanksE) B) and D)
F) None of the above

Exam 16: The Monetary System: The Federal Reserve System

Monetary policy affects employment

Correct AnswerverifiedShow Answer

The Federal Reserve

Correct AnswerverifiedB

When conducting an open-market sale,the Fed

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Who can vote on Federal Open Market Committee decisions?

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Which group within the Federal Reserve System meets to discuss changes in the economy and determine monetary policy?

Correct AnswerverifiedShow Answer

The members of the Federal Reserve's Board of Governors

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The Federal Open Market Committee meets approximately

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The Federal Reserve was created

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The New York Federal Reserve Bank

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Which of the following is not a reason the New York Federal Reserve Bank president always gets to vote at the Federal Open Market Committee meetings?

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Economists call an institution designed to oversee the banking system and regulate the quantity of money in the economy

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Which of the following statements regarding the Federal Open Market Committee is correct?

Correct AnswerverifiedShow Answer

Which of the following individuals serve a four-year term?

Correct AnswerverifiedShow Answer

At the Federal Reserve,

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Which of the following is not correct?

Correct AnswerverifiedD

Which of the following groups is largely responsible for carrying out the Fed's tasks of regulating banks and ensuring the health of the financial system?

Correct AnswerverifiedShow Answer

Which of the following institutions is a central bank?

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Which of the following is not a central bank?

Correct AnswerverifiedC

Which of the following entities actually executes open-market operations?

Correct AnswerverifiedShow Answer

Which government body is primarily responsible for regulating banks and ensuring the health of the banking system?

Correct AnswerverifiedShow Answer

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B

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D

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C

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