Exam 4: Functions of the Fed

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

Assume that the reserve requirements ratio is 15%.An initial injection of $150 million could result in a maximum change in the money supply of

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

Which of the following is currently a main role of the Federal Reserve's Board of Governors?

The purchase of government securities by someone other than the Fed results in

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

The federal funds rate is the rate at which the Fed lends money directly to member banks.

The Board of Governors is composed of

Each member of the Board of Governors is appointed by the president of the United States and serves a nonrenewable 14-year term.

Total funds of commercial banks will initially ____ by the dollar amount of securities ____ by the Fed.

The advisory committee making recommendations to the Fed about economic and banking related issues is the

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

The ____ is directly responsible for setting reserve requirements.

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

Assume that the reserve requirement ratio is 12 percent and that the Fed uses open market operations by buying $200 million worth of Treasury securities.Assuming that banks use all funds except required reserves to make loans and that the public does not store any cash, the money supply should ____ by about ____.

All ____ are required to be members of the Federal Reserve System.

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

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

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