Exam 4: Federal Reserve System

Also known as Gennie Mae.

__________ directors of the Federal Reserve are appointed by the Board of Governors of the Federal Reserve System and may not be stockholders, directors, or employees of existing banks.

Regulation Z requires that lenders clearly explain consumer credit costs and prohibited them from charging overly high-priced credit transactions.

The central bank in the United Kingdom is the

The ability to change reserve requirement is a powerful tool the Fed uses frequently.

The banking system of the United States is a ___________ reserve system because banks are required by the Fed to hold reserves equal to a specified percentage of their deposits.

Formed to support mortgage markets by purchasing and holding mortgage loans,

The capital stock of each Federal Reserve Bank

The three primary means that the Fed can use to exercise monetary policy includes closed market operations, stabilizing reserve requirements, and freeing the Federal discount rate.

All commercial banks are members of the Fed.

___________ is an accommodative activity of the Federal Reserve System.

The primary responsibility of the Fed is to formulate monetary policy which involves regulating the growth of the supply of money, and therefore regulating its cost and availability.

This act requires disclosure of information to help consumers compare the cost and terms of one lease of consumer goods with another and to compare the cost of leasing versus buying on credit or for cash.

State-chartered banks were permitted to join the system if they could show evidence of a satisfactory financial condition

During the past several years

The 1980 Depository Institutions Deregulation and Monetary Control Act applies different reserve requirements to different banks based on their charters.

The Federal Reserve System (Fed), the central bank of the United States, is responsible for setting monetary policy and regulating the banking system. Answer T

The Fed discount rate is the interest rate that a bank must pay to borrow from its regional Federal Reserve Bank.

The money supply can be contracted by holding the amount of reserves constant but raising the reserve requirement.

State-chartered banks