Exam 4: Functions of the Fed

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

The ____ rate is the interest rate charged on Fed district bank loans to depository institutions.

If the Fed desires to ____ the money supply using open market operations, it would instruct the trading desk to ____ government securities.

To increase the money supply, the Trading Desk would be instructed to sell government securities.

A(n) ____ in Federal Reserve float causes a(n) ____ in bank funds.

Adjustment of the primary credit lending rate is the most common means by which the Fed controls the money supply.

As the supply of funds in the banking system ____, the federal funds rate ____.

Which of the following is not a major component of the Federal Reserve System?

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

Since 2003, the Fed's rate on short-term loans to depository institutions is referred to as the

With regard to monetary policy, which of the following is under direct control of the Federal Reserve's Board of Governors?

The ____ is made up of seven individual members, and each member is appointed by the president of the U.S.

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

Which of the following is an action that the Fed uses to increase or decrease the money supply?

____ is (are) not a component of the Fed as it exists today.

The purpose of the Trading Desk of the Federal Reserve Bank of New York is to buy stocks for member commercial banks.

Which of the following is not an activity of Fed district banks?

____ credit extended by the Fed to financial institutions may be used for any purpose and is available only to depository institutions that satisfy specific criteria reflecting financial soundness.

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

The ____ consists of seven members, each of whom is appointed by the President of the United States.