macro 14
currency held by the public plus balances in transactions accounts is the definition of
M1
the federal open market committee include
all 7 governors and 5 of the regional reserve bank presidents
excess reserves are
bank reserves in excess of required reserves
regional fed banks
clear checks between private banks
the federal open market committee meets
every four or five weeks
if market interest rates rise, the selling price of existing bonds in the market will, ceteris paribus
fall
by raising and lowering the discount rate, the fed changes the
incentive for banks to borrow reserves
which of the following does not reduce the fed's control of the money supply
lobbying by consumer watchdog groups
the federal funds rate is the interest rate charged when
one bank lends reserves to another bank
a bond is a
promise to repay borrowed funds
in order to decrease the money supply, the fed can
raise the reserve requirement, increase the discount rate, or sell bonds
the money supply includes M1 plus balances in
saving accounts and money market mutual funds
if banks do not have enough reserves to satisfy the reserve requirement, they can
sell securities
a reduction in the discount rate
signals the federal reserve's desire for additional credit expansion
a growing economy needs a
steadily increasing supply of money to finance market exchanges
which of the following provides evidence that the federal reserve system is politically insulted
the fed governors are appointed for 14-year terms and cannot be reappointed
the federal open market committee is responsible for
the fed's daily activity in financial markets
which of the following is responsible for buying and selling government securities to influence reserves in the banking system
the federal open market committee
which of the following represents the lending capacity of an individual bank
total revenues-required reserves
the fed is most likely to pursue
use of open market operations as the primary mechanism to change reserves