Exam 15: The Federal Reserve System and Open Market Operations

_____ refers to the Federal Reserve's purchase of longer-term government bonds or other securities.

To be considered money, an asset must be:

Over which of the following definitions of the money supply does the Fed have the most control?

The Federal Reserve has direct control over:

If the Fed was concerned about the economy falling into recession, it might try to stimulate the economy by:

If banks keep one-eighth of their deposits in the form of reserves, and the Fed credits Alex's bank account with $8,000, how much does the money supply increase?

When banks borrow directly from the Fed, the interest rate they pay is called the:

U.S. currency has the words "Federal Reserve Note" on it.

Rank the major means of payment from the largest to the smallest amount of dollars.

The monetary base is larger than M2.

Which is TRUE of the structure of the Fed?

Checkable deposits are part of:

Moral hazard occurs when banks and other financial institutions:

Open market operations occur when the Fed:

The Federal Reserve is one of the least independent agencies in the U.S. government.

Which is NOT a reason so much U.S. currency circulates in other countries?

An insolvent bank has greater liabilities than assets.

The Federal Reserve is controlled by the Bilderberger Group and the Trilateral Commission to avoid influence from the political system.

Why are debit cards not listed as money?

Explain why the existence of the Federal Deposit Insurance Corporation may reduce bank panics.