Money and Banking Ch 16
The attendees at the FOMC meetings receive information prior to the meetings that is contained in books with colorful names. The information that is released to the public prior to the meetings is from the:
Beigebook only.
The Chairman of the FOMC is the:
Chairman of the Board of Governors.
The Governors of the Federal Reserve System are appointed by the:
President of the United States.
A large step toward independence occurred for the Fed in 1935 when the:
Secretary of the Treasury and the Comptroller of the Currency were removed from the Board of Governors.
Price stability is declared to be the primary objective of the European System of Central Banks by which agreement?
Treaty of Maastricht
A typical FOMC meeting would best be described as:
a fairly formal session with not much give and take.
Currently the requirement of holding a non-interest-bearing reserve account at the Fed must be met by:
all banks, member or not.
Each of the Reserve Banks has a president who is:
appointed by the bank's board of directors but approved by the board of governors.
The federal funds rate is the interest rate:
banks charge each other for overnight loans on excess reserves held at the Fed.
One valuable lesson investors should learn from the stock market behavior during the late 1990s and early 2000s is that the Fed:
cannot prevent a stock market decline.
Each of the following is a monetary policy action conducted by any of the regional Federal Reserve banks except which action?
conducting open market operations from their banks
The primary purpose of meetings of the FOMC is to:
decide on how to influence financial conditions.
The Federal Reserve's Open Market Committee currently meets:
eight times a year.
The interest rate that the FOMC currently chooses to control is the:
federal funds rate
The information contained in the Fed's Tealbook is released to the public:
five years after the FOMC meeting in which it is used.
The Fed's revenue comes:
from internally generated funds from interest on securities it holds and fees charged to banks for payments system services.
Once the FOMC meetings adjourn, the public is made aware of the FOMC's decision:
immediately after the meeting.
The Chairman of the Board of Governors:
is appointed by the U.S. President, selected from the Board of Governors.
In its role as bank for the U.S. government, the Federal Reserve performs all of the following services except which one?
making discount loans
Considering state chartered banks,
most elect not to join the system.
Member banks of the Federal Reserve System include:
nationally chartered banks and state chartered banks that decide to join.
Once the FOMC announces the result of its meeting, the attendees:
observe a blackout period that lasts for a week following the meeting during which they do not speak publicly about the economic outlook or current monetary policy.
The lines drawn to establish Federal Reserve Districts were based:
on economic and political forces as well as population distribution in 1914.
The services that the Federal Reserve provides to foreign central banks and other international organizations are handled:
only by the Reserve Bank in New York.
Buying and selling U.S. Treasury Securities for the Fed's own portfolio is called:
open market operations.
Most of the Fed's income is:
returned to the U.S. Treasury.
How many members are on the Board of Governors of the Federal Reserve System?
seven
Member countries of the Eurosystem agree to:
share a common monetary policy and use the euro as their currency.
The three branches of the Federal Reserve System include each of the following, except which one?
the Federal Deposit Insurance Corporation. TRUE: The board of governors, the federal open market committee, the 12 regional federal reserve banks
The Reserve Banks of the Federal Reserve System are owned by:
the commercial banks in their districts.
The Federal Reserve System is composed of:
three branches with overlapping responsibilities.
The Federal Reserve Bank of New York is unique from other Reserve banks because it is:
where the Federal Reserve System's portfolio is managed.
The number of regional Federal Reserve Banks is:
12
By 2020, the euro had become the currency of
19 countries in Europe.
