Exam 4: Functions of the Fed

Based on a 2003 policy, the primary credit lending rate is set

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

The ____ is directly responsible for conducting monetary policy.

Most of the Fed's income is transferred to the U.S.Department of Justice.

Repurchase agreements are purchased by the Fed to

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

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?

The ____ the reserve requirement ratio, the ____ the ultimate effect of any initial increase in money supply.

The Trading Desk is sometimes directed to ____ a sufficient amount of Treasury securities that will ____ the federal funds rate to a new targeted level set by the FOMC.

____ includes only currency held by the public and checking deposits as well as savings accounts and small time deposits, money market deposit accounts, and some other items.

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

To increase the money supply growth, the Fed could

Members of the Board of Governors serve 14-year nonrenewable terms.

____ 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.

____ credit may be used for any purpose and is available only to depository institutions that meet specific requirements for financial soundness.

The voting members of the Federal Open Market Committee consist of the Board of Governors plus the

The main monetary policy goal of most central banks is to stabilize the value of the local currency against foreign currencies.

All commercial banks are required to be members of the Fed.

The ____ is directly responsible for controlling money supply growth.