Exam 4: Functions of the Fed

When open market operations are used to ____ bank funds, the yield on debt instruments ____.

When the Fed purchases securities, the total funds of commercial banks ____ by the market value of  the securities purchased by the Fed. This activity initiated by the FOMC's policy directive is referred to as a ____ of money supply growth.

If the Fed initiates a program to purchase long-term Treasury securities, it is most likely attempting to

To increase money supply growth, the Fed could

Which of the following did the Fed NOT do during the credit crisis?

As a result of the Financial Reform Act of 2010, the ____ was established to regulate financial products and services. ​

Currently, about 90 percent of all banks in the United States are members of the Fed.

If the Trading Desk is instructed to increase the federal funds rate, its traders _________ securities dealers, and those dealers' bank account balances are __________.

The                  is directly responsible for controlling money supply growth.

The form of money consisting of currency held by the public and checking deposits at depository institutions is called

Each Federal Reserve district bank is responsible for reporting its regional conditions, and all of these reports are consolidated to compose the Beige Book.

When the Fed initiated a program to purchase commercial paper, one of its primary goals was to

When the Fed buys Treasury bills as a means of increasing the money supply, it places ____ pressure on their prices and ____ pressure on their yields.

When the Fed purchases _______, it is attempting to directly stimulate the housing market.

To increase the money supply, the Fed may increase the reserve requirement ratio.

____ open market operations offset the impact of other conditions that affect the level of funds. ​

The ____ rate is the interest rate charged on the Fed's short-term loans to depository institutions.

In December 2008, during the credit crisis, the Fed raised the target for the federal funds rate as a range between 2.5 and 3.5 percent and maintained the federal funds rate within this range until the end of 2015 in order to stimulate the economy.

During the credit crisis, the Fed provided funding that allowed Bear Stearns, a large securities firm, to avoid bankruptcy even though Bear Stearns was not a depository institution.

The Fed's primary goal has historically been to add liquidity to the mortgage market by continuously purchasing mortgage-backed securities.