ECON 215- Exam 4
The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then rises by $250, what will be the interest rate yield to a new buyer of the bond? a. 12 percent b. 6 percent c. 10 percent d. 20 percent e. 15 percent
a. 12 percent
The group of three economists who provide fiscal policy recommendations to the president is the a. Council of Economic Advisers. b. Joint Economic Committee. c. Bureau of Economic Analysis. d. Federal Reserve Board of Governors.
a. Council of Economic Advisers.
As it relates to Federal Reserve activities, the acronym FOMC describes the a. Federal Open Market Committee. b. Federal Options Market Committee. c. Federal Organization for Monetary Control. d. Federal Organization for Money Creation.
a. Federal Open Market Committee.
If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as a. a medium of exchange. b. a store of value. c. a unit of account. d. an economic investment.
a. a medium of exchange.
Discretionary fiscal policy will stabilize the economy most when a. deficits are incurred during recessions and surpluses during inflations. b. the budget is balanced each year. c. deficits are incurred during inflations and surpluses during recessions. d. budget surpluses are continuously incurred.
a. deficits are incurred during recessions and surpluses during inflations.
Fiscal policy refers to a. deliberate changes in government spending and taxes to promote economic growth, full employment, and price level stability. b. deliberate changes in government spending and taxes to achieve greater equality in the distribution of income. c. altering of the interest rate to change aggregate demand. d. fact that equal increases in government spending and taxation will be contractionary.
a. deliberate changes in government spending and taxes to promote economic growth, full employment, and price level stability.
If the MPS in an economy is 0.1, government could shift the aggregate demand curve rightward by $40 billion by a. increasing government spending by $4 billion. b. increasing government spending by $40 billion. c. decreasing taxes by $4 billion. d. increasing taxes by $4 billion
a. increasing government spending by $4 billion.
The value of money varies a. inversely with the price level. b. directly with the volume of employment. c. directly with the price level. d. directly with the interest rate.
a. inversely with the price level.
The purchasing power of money and the price level vary a. inversely. b. directly during recessions but inversely during inflations. c. directly but not proportionately. d. directly and proportionately.
a. inversely.
The portion of the public debt held outside federal agencies and the Federal Reserve is a. larger than the portion held by federal agencies and the Federal Reserve. b. smaller than the portion held by federal agencies and the Federal Reserve. c. equally split between U.S. and foreign lenders. d. all held by foreign lenders.
a. larger than the portion held by federal agencies and the Federal Reserve.
Tariffs a. may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). b. are also called import quotas. c. are excise taxes on goods exported abroad. d. are per-unit subsidies designed to promote exports.
a. may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs).
The Federal Reserve Banks buy government securities from commercial banks. As a result, the checkable deposits a. of commercial banks are unchanged, but their reserves increase. b. and reserves of commercial banks both decrease. c. of commercial banks are unchanged, but their reserves decrease. d. and reserves of commercial banks are both unchanged.
a. of commercial banks are unchanged, but their reserves increase.
According to the Taylor rule, if the unemployment rate is 3.3 percent and there is no inflation gap, the Fed should a. raise the Fed's targeted interest rate by 1 percentage point. b. lower the Fed's targeted interest rate by 1 percentage point. c. lower the federal funds rate by 3.3 percentage points. d. do nothing, as the economy will correct itself
a. raise the Fed's targeted interest rate by 1 percentage point.
The effect of expansionary fiscal policy is shown as a a. rightward shift in the economy's aggregate demand curve. b. movement along an existing aggregate demand curve. c. leftward shift in the economy's aggregate supply curve. d. leftward shift in the economy's aggregate demand curve.
a. rightward shift in the economy's aggregate demand curve.
Common arguments often raised to justify trade barriers include the following, except a. the need to protect price-sensitive consumers. b. the cheap foreign labor argument. c. the need to protect infant-industries. d. the need to protect domestic employment.
a. the need to protect price-sensitive consumers.
Checkable deposits are classified as money because a. they can be readily used in purchasing goods and paying debts. b. banks hold currency equal to the value of their checkable deposits. c. they are ultimately the obligations of the Treasury. d. they earn interest income for the depositor.
a. they can be readily used in purchasing goods and paying debts.
A $70 price tag on a sweater in a department store window is an example of money functioning as a a. unit of account. b. standard of deferred payments. c. store of value. d. medium of exchange.
a. unit of account.
If nominal GDP is $1,000 billion and, on average, each dollar is spent four times in the economy over a year, then the quantity of money demanded annually for transactions purposes will be a. 500 billion b. 250 billion c. 4,000 billion d. 1,000 billion e. 750 billion
b. 250 billion
In the U.S. economy, the money supply is controlled by the a. U.S. Treasury. b. Federal Reserve System. c. Senate Committee on Banking and Finance. d. Congress.
b. Federal Reserve System.
"NAFTA" stands for a. North African Free Trade Area. b. North American Free Trade Agreement. c. North Asian Free Trade Agreement. d. New Zealand-Australia Free Trade Agreement.
b. North American Free Trade Agreement.
Which of the following represents the most expansionary fiscal policy? a. a $10 billion tax cut b. a $10 billion increase in government spending c. a $10 billion tax increase d. a $10 billion decrease in government spending
b. a $10 billion increase in government spending
An appropriate fiscal policy for a severe recession is a. a decrease in government spending. b. a decrease in tax rates. c. appreciation of the dollar. d. an increase in interest rates.
b. a decrease in tax rates.
Federal Reserve Notes in circulation are a. an asset as viewed by the Federal Reserve Banks. b. a liability as viewed by the Federal Reserve Banks. c. neither an asset nor a liability as viewed by the Federal Reserve Banks. d. part of M1 but not of M2.
b. a liability as viewed by the Federal Reserve Banks.
On a diagram where the interest rate and the quantity of money demanded are shown on the vertical and horizontal axes, respectively, the transactions demand for money can be represented by a. a line parallel to the horizontal axis. b. a vertical line. c. a downsloping line or curve from left to right. d. an upsloping line or curve from left to right.
b. a vertical line.
If the economy were encountering a severe recession, proper monetary and fiscal policies would call for a. selling government securities, raising the reserve ratio, lowering the discount rate, increasing interest paid on reserves held at Fed banks, and a budgetary surplus. b. buying government securities, reducing the reserve ratio, reducing the discount rate, reducing interest paid on reserves held at Fed banks, and a budgetary deficit. c. buying government securities, raising the reserve ratio, raising the discount rate, reducing interest paid on reserves held at Fed banks, and a budgetary surplus. d. buying government securities, reducing the reserve ratio, raising the discount rate, reducing interest paid on reserves held at Fed banks, and a budgetary deficit.
b. buying government securities, reducing the reserve ratio, reducing the discount rate, reducing interest paid on reserves held at Fed banks, and a budgetary deficit.
Other things equal, an excessive increase in the money supply will a. increase the purchasing power of each dollar. b. decrease the purchasing power of each dollar. c. have no impact on the purchasing power of the dollar. d. reduce the price level.
b. decrease the purchasing power of each dollar.
The Federal Reserve System a. has the same status as the Supreme Court. b. is basically an independent agency. c. has the status of a congressional committee. d. is an agency of the executive branch of the federal government.
b. is basically an independent agency.
Dumping of goods abroad a. constitutes a general case for permanent tariffs. b. is simply comparative advantage at work. c. may be part of a nation's strategy to rectify its trade deficit. d. drives up prices of the dumped goods.
b. is simply comparative advantage at work.
In the theory of comparative advantage, a good should be produced in that nation where a. the production possibilities line lies further to the right than the trading possibilities line. b. its cost is least in terms of alternative goods that might otherwise be produced. c. its absolute cost in terms of real resources used is least. d. its absolute money cost of production is least.
b. its cost is least in terms of alternative goods that might otherwise be produced.
A tax reduction of a specific amount will be more expansionary the a. smaller is the economy's MPC. b. larger is the economy's MPC. c. smaller is the economy's multiplier. d. less is the economy's built-in stability.
b. larger is the economy's MPC.
An increase in the money supply will a. lower interest rates and lower the equilibrium GDP. b. lower interest rates and increase the equilibrium GDP. c. increase interest rates and increase the equilibrium GDP. d. increase interest rates and lower the equilibrium GDP.
b. lower interest rates and increase the equilibrium GDP.
The transactions demand for money is most closely related to money functioning as a a. unit of account. b. medium of exchange. c. store of value. d. measure of value.
b. medium of exchange.
The primary gain from international trade is a. increased employment in the domestic export sector. b. more goods than would be attainable through domestic production alone. c. tariff revenue. d. increased employment in the domestic import sector.
b. more goods than would be attainable through domestic production alone.
An increase in nominal GDP increases the demand for money because a. interest rates will rise. b. more money is needed to finance a larger volume of transactions. c. bond prices will fall. d. the opportunity cost of holding money will decline.
b. more money is needed to finance a larger volume of transactions.
If a nation has a comparative advantage in the production of X, this means the nation a. cannot benefit by producing and trading this product. b. must give up less of other goods than other nations in producing a unit of X. c. has a production possibilities curve identical to those of other nations. d. is not subject to increasing opportunity costs.
b. must give up less of other goods than other nations in producing a unit of X.
The discount rate is the interest a. rate at which the central banks lend to the U.S. Treasury. b. rate at which the Federal Reserve Banks lend to commercial banks. c. yield on long-term government bonds. d. rate at which commercial banks lend to the public.
b. rate at which the Federal Reserve Banks lend to commercial banks.
The terms of trade reflect the a. rate at which gold exchanges internationally for any domestic currency. b. ratio at which nations will exchange two goods. c. fact that the gains from trade will be equally divided. d. cost conditions embodied in a single country's production possibilities curve.
b. ratio at which nations will exchange two goods.
Open-market operations include a. changes in the reserve ratio. b. repos and reverse repos. c. paying interest on excess reserves held at Federal Reserve Banks. d. changes in the discount rate.
b. repos and reverse repos.
If you place a part of your summer earnings in a savings account, you are using money primarily as a a. medium of exchange. b. store of value. c. unit of account. d. standard of value.
b. store of value.
When current government expenditures exceed current tax revenues and the economy is achieving full employment, a. the cyclically adjusted budget has neither a deficit nor a surplus. b. the cyclically adjusted budget has a deficit. c. fiscal policy is contractionary. d. the cyclically adjusted budget has a surplus.
b. the cyclically adjusted budget has a deficit.
The difference between M1 and M2 is that a. the former includes time deposits. b. the latter includes small-denominated time deposits, savings accounts, money market deposit accounts, and money market mutual fund balances. c. the latter includes negotiable government bonds. d. the latter includes cash held by commercial banks and the U.S. Treasury.
b. the latter includes small-denominated time deposits, savings accounts, money market deposit accounts, and money market mutual fund balances.
To say "money is what money does" means that a. money has been defined in a Constitutional amendment. b. whatever performs the functions of money extremely well is considered to be money. c. the money supply includes all public and private securities purchased by society. d. society, acting through Congress, specifies what shall be included in the money supply
b. whatever performs the functions of money extremely well is considered to be money.
Built-in stability means that a. an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby stabilize the economy. b. with given tax rates and expenditures policies, a rise in domestic income will reduce a budget deficit or produce a budget surplus, while a decline in income will result in a deficit or a lower budget surplus. c. Congress will automatically change the tax structure and expenditure programs to correct upswings and downswings in business activity. d. government expenditures and tax receipts automatically balance over the business cycle, though they may be out of balance in any single year.
b. with given tax rates and expenditures policies, a rise in domestic income will reduce a budget deficit or produce a budget surplus, while a decline in income will result in a deficit or a lower budget surplus.
In the United States, monetary policy is the responsibility of the a. U.S. Treasury. b. Department of Commerce. c. Board of Governors of the Federal Reserve System. d. U.S. Congress.
c. Board of Governors of the Federal Reserve System.
On a diagram where the interest rate and the quantity of money demanded are shown on the vertical and horizontal axes respectively, the asset demand for money can be represented by a. a line parallel to the horizontal axis. b. a vertical line. c. a downsloping line or curve from left to right. d. an upsloping line or curve from left to right.
c. a downsloping line or curve from left to right.
The fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that a. the production possibilities curves of any two nations are identical. b. a nation's production possibilities and trading possibilities lines coincide. c. a nation's trading possibilities line lies to the right of its production possibilities line. d. a nation's production possibilities line lies to the right of its trading possibilities line.
c. a nation's trading possibilities line lies to the right of its production possibilities line.
If you are estimating your total expenses for school next semester, you are using money primarily as a. a medium of exchange. b. a store of value. c. a unit of account. d. an economic investment.
c. a unit of account.
Assume the economy is at full employment and that investment spending declines dramatically. If the goal is to restore full employment, government fiscal policy should be directed toward a. an equality of tax receipts and government expenditures. b. an excess of tax receipts over government expenditures. c. an excess of government expenditures over tax receipts. d. a reduction of subsidies and transfer payments and an increase in tax rates.
c. an excess of government expenditures over tax receipts.
If severe demand-pull inflation was occurring in the economy, proper government policies would involve a government a. budget deficit, the purchase of securities in the open market, a higher discount rate, and higher reserve requirements. b. budget deficit, the sale of securities in the open market, a higher discount rate, and lower reserve requirements. c. budget surplus, the sale of securities in the open market, a higher discount rate, and higher reserve requirements. d. budget surplus, the purchase of securities in the open market, a lower discount rate, and lower reserve requirements.
c. budget surplus, the sale of securities in the open market, a higher discount rate, and higher reserve requirements.
The largest component of the money supply (M1) is a. currency in bank vaults. b. currency in circulation. c. checkable deposits. d. stock certificates.
c. checkable deposits.
Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n) a. protective tariff. b. export subsidy. c. import quota. d. voluntary export restriction.
c. import quota.
Discretionary fiscal policy refers to a. any change in government spending or taxes that destabilizes the economy. b. the authority that the president has to change personal income tax rates. c. intentional changes in taxes and government expenditures made by Congress to stabilize the economy. d. the changes in taxes and transfers that occur as GDP changes.
c. intentional changes in taxes and government expenditures made by Congress to stabilize the economy.
Contractionary fiscal policy is so named because it a. involves a contraction of the nation's money supply. b. necessarily reduces the size of government. c. is aimed at reducing aggregate demand and thus achieving price stability. d. is expressly designed to expand real GDP.
c. is aimed at reducing aggregate demand and thus achieving price stability.
"Offshoring" refers to a. importing goods, services, and resources. b. stashing money in offshore accounts for the purpose of avoiding taxes. c. shifting work overseas that was previously done domestically. d. exporting key resources.
c. shifting work overseas that was previously done domestically.
A specific reduction in government spending will dampen demand-pull inflation by a greater amount the a. smaller is the economy's MPC. b. flatter is the economy's aggregate supply curve. c. smaller is the economy's MPS. d. less is the economy's built-in stability.
c. smaller is the economy's MPS.
The asset demand for money is most closely related to money functioning as a a. unit of account. b. medium of exchange. c. store of value. d. measure of value.
c. store of value.
Other things equal, a tariff is a. superior to an import quota for Americans because a tariff increases the profits of foreign producers. b. inferior to an import quota for Americans because a tariff increases the profits of domestic producers. c. superior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury. d. inferior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury.
c. superior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury.
To say that "the U.S. public debt is mostly held internally" is to say that a. only interest payments on the public debt are an economic burden. b. official figures understate the size of the public debt. c. the bulk of the public debt is owned by U.S. citizens and institutions. d. the public debt is equal to the land and building assets owned by the federal government.
c. the bulk of the public debt is owned by U.S. citizens and institutions.
When current tax revenues exceed current government expenditures and the economy is achieving full employment, a. the cyclically adjusted budget has neither a deficit nor a surplus. b. the cyclically adjusted budget may have either a deficit or a surplus. c. the cyclically adjusted budget has a surplus. d. the government is engaging in an expansionary fiscal policy.
c. the cyclically adjusted budget has a surplus.
The four main tools of monetary policy are a. tax-rate changes, the discount rate, open-market operations, and the federal funds rate. b. tax-rate changes, changes in government expenditures, open-market operations, and interest on excess reserves. c. the discount rate, the reserve ratio, interest on excess reserves, and open-market operations. d. changes in government expenditures, the reserve ratio, the federal funds rate, and the discount rate.
c. the discount rate, the reserve ratio, interest on excess reserves, and open-market operations.
If the quantity of money demanded exceeds the quantity supplied, a. the supply-of-money curve will shift to the left. b. the demand-for-money curve will shift to the right. c. the interest rate will rise. d. the interest rate will fall.
c. the interest rate will rise.
In defining money as M1, economists exclude time deposits because a. the intrinsic value of time deposits is nil. b. the purchasing power of time deposits is much less stable than that of checkable deposits and currency. c. they are not directly or immediately a medium of exchange. d. they are not recognized by the federal government as legal tender.
c. they are not directly or immediately a medium of exchange.
Graphical analysis of tariffs reveals that a. they benefit domestic consumers at the expense of domestic producers. b. revenue gains outweigh the costs to domestic consumers. c. they increase domestic production of the good for which imports face tariffs. d. although the benefits are not shared equally, everyone in the domestic economy benefits from tariffs.
c. they increase domestic production of the good for which imports face tariffs.
The opportunity cost of holding money a. is zero because money is not an economic resource. b. varies inversely with the interest rate. c. varies directly with the interest rate. d. varies inversely with the level of economic activity.
c. varies directly with the interest rate.
The World Trade Organization a. is also known as the International Monetary Fund (IMF). b. is also known as NAFTA. c. was established to oversee trade agreements between its member nations. d. enhances world trade by providing interest rate subsidies to foreign borrowers who buy exports on credit.
c. was established to oversee trade agreements between its member nations.
If the price index rises from 100 to 120, the purchasing power value of the dollar a. may either rise or fall. b. will rise by one-sixth. c. will fall by one-sixth. d. will rise by 20 percent.
c. will fall by one-sixth.
Stabilizing a nation's price level and the purchasing power of its money can be achieved a. only with fiscal policy. b. only with monetary policy. c. with both fiscal and monetary policy. d. with neither fiscal nor monetary policy.
c. with both fiscal and monetary policy.
U.S. exports of goods and services (on a national income account basis) are about a. 20 percent of U.S. GDP. b. 8 percent of U.S. GDP. c. 28 percent of U.S. GDP. d. 12 percent of U.S. GDP.
d. 12 percent of U.S. GDP.
The price of a bond having no expiration date is originally $8,000 and has a fixed annual interest payment of $800. A fall in the price of the bond by $3,000 will provide a new buyer of the bond an interest rate of a. 10 percent. b. 12 percent. c. 14 percent. d. 16 percent.
d. 16 percent.
The Federal Reserve System was created in a. 1926. b. 1946. c. 1895. d. 1913.
d. 1913.
The group that sets the Federal Reserve System's policy on buying and selling government securities (bills, notes, and bonds) is the a. Federal Deposit Insurance Corporation (FDIC). b. Federal Bond Sale Authority. c. Council of Economic Advisers. d. Federal Open Market Committee (FOMC).
d. Federal Open Market Committee (FOMC).
The paper money used in the United States is a. National Bank notes. b. Treasury notes. c. United States notes. d. Federal Reserve notes.
d. Federal Reserve notes.
Money functions as a. a store of value. b. a unit of account. c. a medium of exchange. d. a store of value, a unit of account, and a medium of exchange.
d. a store of value, a unit of account, and a medium of exchange.
An appropriate fiscal policy for severe demand-pull inflation is a. an increase in government spending. b. depreciation of the dollar. c. a reduction in interest rates. d. a tax rate increase.
d. a tax rate increase.
Assume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U.S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is a. not directly affected, but the money-creating potential of the commercial banking system is increased by $12 million. b. directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $16 million. c. directly reduced by $4 million and the money-creating potential of the commercial banking system is decreased by an additional $12 million. d. directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $12 million.
d. directly increased by $4 million and the money-creating potential of the commercial banking system is increased by an additional $12 million.
Answer the question based on the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest yield = 10 percent. If the price of this bond increases to $2,500, the interest yield will a. rise to 14 percent. b. fall to 2.5 percent. c. rise to 25 percent. d. fall to 4 percent. e. fall to 5 percent.
d. fall to 4 percent.
The M2 money supply includes a. stock certificates. b. currency in bank vaults. c. the cash value of life insurance policies. d. individual shares in money market mutual funds.
d. individual shares in money market mutual funds.
Expansionary fiscal policy is so named because it a. involves an expansion of the nation's money supply. b. necessarily expands the size of government. c. is aimed at achieving greater price stability. d. is designed to expand real GDP.
d. is designed to expand real GDP.
The "eurozone" a. is another name for the European Union. b. refers to the common currency used by all European Union members. c. is a geographic region in Europe with no national sovereignty, where free trade between European nations is allowed to occur. d. is the subset of the EU that uses a common currency.
d. is the subset of the EU that uses a common currency.
The effect of contractionary fiscal policy is shown as a a. rightward shift in the economy's aggregate demand curve. b. rightward shift in the economy's aggregate supply curve. c. movement along an existing aggregate demand curve. d. leftward shift in the economy's aggregate demand curve.
d. leftward shift in the economy's aggregate demand curve.
When a quota on a product is removed, this policy action a. raises the price for consumers. b. none of these answers are correct. c. benefits domestic producers of the product. d. lowers the price for consumers.
d. lowers the price for consumers.
The law of increasing opportunity costs a. applies to land-intensive commodities but not to labor-intensive or capital-intensive commodities. b. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. c. refutes the principle of comparative advantage. d. may limit the extent to which a nation specializes in producing a particular product.
d. may limit the extent to which a nation specializes in producing a particular product.
Suppose the government cuts taxes to keep the economy's cyclically adjusted budget in balance when the economy is expanding. The government is engaging in a(n) a. contractionary fiscal policy. b. expansionary fiscal policy. c. low-interest-rate policy. d. neutral fiscal policy.
d. neutral fiscal policy.
When there is inflation in the economy, it implies that the a. price index is rising and the purchasing power of money is also rising. b. price index is falling and the purchasing power of money is also falling. c. price index is falling and the purchasing power of money is rising. d. price index is rising and the purchasing power of money is falling.
d. price index is rising and the purchasing power of money is falling.
An important routine function of the Federal Reserve Bank is to a. supervise the liquidation of the assets of bankrupt state banks. b. help large commercial banks develop correspondent relationships with smaller commercial banks. c. advise commercial banks as to the most profitable ways of reinvesting profits. d. provide facilities by which commercial banks and thrift institutions may collect checks.
d. provide facilities by which commercial banks and thrift institutions may collect checks.
Suppose the price level is fixed, the MPC is 0.5, and the GDP gap is a negative $80 billion. To achieve full-employment output (exactly), government should a. increase government expenditures by $80 billion. b. reduce government expenditures by $40 billion. c. reduce taxes by $40 billion. d. reduce taxes by $80 billion.
d. reduce taxes by $80 billion.
In an aggregate demand-aggregate supply diagram, equal decreases in government spending and taxes will a. shift the AD curve to the right. b. increase the equilibrium GDP. c. not affect the AD curve. d. shift the AD curve to the left.
d. shift the AD curve to the left.
The Federal Open Market Committee (FOMC) is made up of a. the chair of the Board of Governors along with the 12 presidents of the Federal Reserve Banks. b. the seven members of the Board of Governors along with the president of the New York Federal Reserve Bank. c. the seven members of the Board of Governors of the Federal Reserve System along with the three members of the Council of Economic Advisers. d. the seven members of the Board of Governors of the Federal Reserve System along with the president of the New York Federal Reserve Bank and four other Federal Reserve Bank presidents on a rotating basis.
d. the seven members of the Board of Governors of the Federal Reserve System along with the president of the New York Federal Reserve Bank and four other Federal Reserve Bank presidents on a rotating basis.