Exam 13: Factor Markets: With Emphasis on the Labor Market

If reserves increase by $8 billion,what is the difference in the resulting change in checkable deposits when the required reserve ratio is 12.5 percent compared to when it is 10 percent?

Suppose that the Fed undertakes an open market sale,selling $1 million worth of securities to a bank.If the required reserve ratio is 8%,checkable deposits (or the money supply),would _______________ by ________________ million,assuming that there are no cash leakages and that banks hold zero excess reserves.

Explain the major differences between the Federal Reserve and the U.S.Treasury.

The president of the Federal Reserve Bank of ________________ holds a permanent seat on the _________________________.

The members of the Board of Governors of the Federal Reserve are

When the Fed purchases securities from a bank,it __________ reserves and ____________ the money supply.

A discount loan is a loan the Federal Reserve makes to a commercial bank.

Open Market Operations are conducted by

The Federal Open Market Committee (FOMC)is composed of the seven members of the Board of Governors,

One of the Fed's functions is to be the government's banker.This function means that the

A required reserve ratio of 12 percent gives rise to a simple deposit multiplier of

When one commercial bank borrows from another commercial bank,it pays the __________ rate.

Open market purchases of government securities

When the Fed sells government securities to a bank,the securities will be

When the Federal Open Market Committee (FOMC)votes on policy,it does so in the following order: the chair votes first,the vice chair votes second,and the remaining FOMC members vote based on their seniority at the Fed.

To decrease the money supply,the Fed may

A bank is reserve deficient when

In the federal funds market,

In controlling the nation's money supply,the Fed is obligated to seek the advice of

The corridor is the ________________ section of the ______________________ curve of reserves in the federal funds market.