Chapter 13 TB Pt. 1
What percentage of all banks in the United States belong to the Federal Reserve System?
33%
Who owns the Federal Reserve banks?
The private commercial banks in each district which are members of the Federal Reserve System
The beige book is prepared by
district banks
The Federal Reserve district banks
engage in monetary policy directly through discount lending
The national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the
green book
The margin requirement set by the Federal Reserve is the
proportion of the purchase price of a security that an investor must pay in cash.
The Depository Institutions Deregulation and Monetary Control Act of 1980
required all banks to maintain reserve deposits with the Fed
Members of the Board of Governors
serve one nonrenewable fourteen-year term
Federal Reserve district banks perform all of the following roles EXCEPT
setting the federal funds rate
Which groups were opposed to the Bank of the United States?
southern and western agrarian and small-business interests
The National Monetary Commission
was created by Congress to study the setting up of a central bank
When did the Federal Reserve Act become law?
1913
What is the name of the entity, composed of Federal Reserve district bankers, that consults on monetary policy?
The Federal Advisory Council
How many Federal Reserve districts are there?
12
The movement to set up a central bank in the United States was spurred by the financial panic that occurred in
1907
Who organized the Bank of the United States?
Alexander Hamilton
Which president failed to renew the charter of the Second Bank of the United States?
Andrew Jackson
Why has the Federal Reserve chairman often been called the second most important person in the nation?
Because the Fed is in control of monetary policy
In January 2006, President Bush appointed which of the following to be chair of the Federal Reserve?
Bernanke
The members of Federal Reserve district bank boards of directors who are bankers are known as
Class A directors
Which of the following cities contains a Federal Reserve bank?
Dallas
Which of the following is NOT considered one of the four principal groups in the Federal Reserve System?
Federal Deposit Insurance Corporation
Which of the following statements is correct?
Federal Reserve district banks pay dividends on their earnings to member banks.
What is the length of a term for the Chairman of the Board of Governors?
Four years
Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?
It eliminated restrictions on interstate banking for member banks
Who had served as a de facto lender of last resort during the 1907 panic?
J.P Morgan
Which of the following cities does NOT contain a Federal Reserve bank?
Los Angeles
Which of the following men has NOT served as Chairman of the Board of Governors?
Milton Friedman
Why did fewer state banks choose to become or remain members of the Federal Reserve System during the 1960s and 1970s?
Nominal interest rates rose
Which best describes the Federal Reserve district banks?
They are private-government joint ventures
Members of the Board of Governors are
appointed by the President of the United States, subject to confirmation by the Senate
Which of the following is NOT a way in which power was divided up in the Federal Reserve System?
between importers and exporters
In 1913, Congress and the President did not envision that the Fed would control
broad control over most aspects of money and the banking system
Which of the following is NOT a responsibility of the Board of Governors?
carrying out open market operations
The members of Federal Reserve district bank boards of directors who are leaders in industry, commerce, and agriculture are known as
class B directors
The members of Federal Reserve district bank boards of directors appointed by the Board of Governors are known as
class C directors
The members of Federal Reserve district bank boards of directors who represent the public interest are known as
class C directors
Federal Reserve districts
cut across state and economic boundaries
Under the Federal Reserve Act, which banks must be members of the Federal Reserve System?
national banks
Which of the following is NOT an activity carried out by Federal Reserve district banks?
open market operations
