Which of the following is not a major component of the Federal Reserve System?
a. member banks
b. Federal Open Market Committee
c. Securities and
... [Show More] Exchange Commission
d. Board of Governors
C
As a result of the Financial Reform Act of 2010, the ____ was assigned the role of regulating financial products and services.
a. Federal Advisory Committee
b. Federal Open Market Committee
c. Consumer Financial Protection Bureau
d. Board of Governors
C
Which of the following is not an activity of Fed district banks?
a. clearing checks
b. replacing old currency
c. providing loans to depository institutions
d. acting as an intermediary to match up lenders and borrowers in the stock market
D
All ____ are required to be members of the Federal Reserve System.
a. state banks
b. national banks
c. savings and loan associations
d. finance companies
e. A and B
B
The ____ is made up of seven individual members, and each member is appointed by the president of the U.S.
a. Board of Governors
b. Federal Reserve district bank
c. Federal Open Market Committee (FOMC)
d. Securities and Exchange Commission
A
Which of the following is currently a main role of the Federal Reserve's Board of Governors?
a. regulating commercial banks
b. regulating foreign trade
c. controlling monetary policy
d. A and C
D
Members of the Board of Governors serve 14-year nonrenewable terms.
a. True
b. False
T
With regard to monetary policy, which of the following is under direct control of the Federal Reserve's Board of Governors?
a. revise reserve requirements for depository institutions
b. authorize changes in the amount of borrowing by the Treasury
c. monitor the stock market for insider trading
d. monitor the derivatives market for illegal trading strategies
A
The ____ rate is the interest rate charged on Fed district bank loans to depository institutions.
a. federal funds
b. prime
c. primary credit lending
d. real
C
Which of the following is an action that the Fed uses to increase or decrease the money supply?
a. buying or selling Treasury securities in the secondary market
b. adjusting the tax rate imposed on income earned on Treasury securities
c. adjusting the coupon rate on Treasury bonds
d. selling Treasury securities in the primary market
A
The Policy Directive is provided by Board of Governors to the FOMC.
a. True
b. False
F
Total funds of commercial banks will initially ____ by the dollar amount of securities ____ by the Fed.
a. increase; purchased
b. increase; sold
c. decrease; purchased
d. A and B
A [Show Less]