Exam 12: Exploring Central Banks and Their Impact on the Economy and Financial System

Which of the following roles of today's Federal Reserve System was proven effective following the terrorist attacks of September 2001?

The Federal Reserve Act, creating the system of Federal Reserve banks, was passed by Congress and signed into law in:

It is often argued that price level stability must be the principal long-run goal of central bank policy and therefore, central banks must pay attention to:

By controlling the rate of growth in the money supply, the central bank expects to

The first central bank in the world, chartered in 1694, was the:

The FOMC must meet at least 4 times a year.

The world's newest central bank is the:

What are the required conditions in order for a new bank charter to be approved in the United States?

Which of the following did not cause the creation of the Federal Reserve System?

Each Federal Reserve bank sets its own discount rate and may do so without Federal Reserve Board approval.

Required reserves earn no interest.

The Federal Reserve can influence the size of the money multiplier but not the size of the monetary base.

The most critical objective of the Federal Reserve is to:

The power to regulate the quantity and value of money has been delegated by Congress to the U.S. Treasury Department.

Central banking in the U.S. is directed toward

If the central bank reduces a nation's rate of growth in its monetary supply (or money stock) income and spending in the economy should grow more slowly.

Money can be anything that serves as a medium of exchange in the purchase of goods and services.

The early structure of the Federal Reserve was:

The dollar volume of deposits that the banking system can create for each new dollar of excess legal reserves injected into the banking system is known as the deposit multiplier.

The Federal Reserve System's chief policy tool when the System was first created was: