Question 1

Which of the following is not a central bank?

Accepted Answer

A) The Bank of England 
B) The Bank of Japan 
C) The Bank of America 
D) The Federal Reserve 
A) The Bank of England 
B) The Bank of Japan 
C) The Bank of America 
D) The Federal Reserve C

Question 2

The Federal Reserve

Accepted Answer

A) was created in 1836. 
B) serves as a lender of last resort. 
C) was created to facilitate the federal government's collection of taxes as well as its expenditures. 
D) All of the above are correct. 
A) was created in 1836. 
B) serves as a lender of last resort. 
C) was created to facilitate the federal government's collection of taxes as well as its expenditures. 
D) All of the above are correct. B

Question 3

Which of the following is not correct?

Accepted Answer

A) The regional Federal Reserve Banks play a role in regulating banks and ensuring the health of the banking system. 
B) The President of the New York Federal Reserve Regional Bank always gets to vote on the decisions made by the Federal Open Market Committee. 
C) U.S.monetary policy is made by the Federal Open Market Committee. 
D) The Federal Open Market Committee meets every 12 weeks. 
A) The regional Federal Reserve Banks play a role in regulating banks and ensuring the health of the banking system. 
B) The President of the New York Federal Reserve Regional Bank always gets to vote on the decisions made by the Federal Open Market Committee. 
C) U.S.monetary policy is made by the Federal Open Market Committee. 
D) The Federal Open Market Committee meets every 12 weeks. D

Question 4

The New York Federal Reserve Bank

Accepted Answer

A) president always gets to vote at the FOMC meetings. 
B) conducts open market transactions. 
C) is one of 12 regional Federal Reserve Banks. 
D) All of the above are correct. 
A) president always gets to vote at the FOMC meetings. 
B) conducts open market transactions. 
C) is one of 12 regional Federal Reserve Banks. 
D) All of the above are correct.

Question 5

Which of the following groups is largely responsible for carrying out the Fed's tasks of regulating banks and ensuring the health of the financial system?

Accepted Answer

A) FOMC 
B) the Board of Governors 
C) the New York Fed 
D) the regional Federal Reserve Banks 
A) FOMC 
B) the Board of Governors 
C) the New York Fed 
D) the regional Federal Reserve Banks

Question 6

The Federal Reserve was created

Accepted Answer

A) in 1913 by Congress 
B) as a result of the Great Depression 
C) according to the standards enforced by NATO 
D) by President Kennedy 
A) in 1913 by Congress 
B) as a result of the Great Depression 
C) according to the standards enforced by NATO 
D) by President Kennedy

Question 7

Economists call an institution designed to oversee the banking system and regulate the quantity of money in the economy

Accepted Answer

A) a central bank. 
B) a charter bank. 
C) a national bank. 
D) a state bank. 
A) a central bank. 
B) a charter bank. 
C) a national bank. 
D) a state bank.

Question 8

Which government body is primarily responsible for regulating banks and ensuring the health of the banking system?

Accepted Answer

A) ​The U.S.Treasury 
B) Federal Deposit Insurance Corporation 
C) The Federal Reserve Board 
D) ​The regional Federal Reserve Banks 
A) ​The U.S.Treasury 
B) Federal Deposit Insurance Corporation 
C) The Federal Reserve Board 
D) ​The regional Federal Reserve Banks

Question 9

Who can vote on Federal Open Market Committee decisions?

Accepted Answer

A) all of the members of the Board of Governors and all of the Federal Reserve Bank presidents 
B) all of the members of the Board of Governors and some of the Federal Reserve Bank presidents 
C) some of the members of the Board of Governors and all of the Federal Reserve Bank presidents 
D) some of the members of the Board of Governors and some of the Federal Reserve Bank presidents 
A) all of the members of the Board of Governors and all of the Federal Reserve Bank presidents 
B) all of the members of the Board of Governors and some of the Federal Reserve Bank presidents 
C) some of the members of the Board of Governors and all of the Federal Reserve Bank presidents 
D) some of the members of the Board of Governors and some of the Federal Reserve Bank presidents

Question 10

Which of the following institutions is a central bank?

Accepted Answer

A) the Bank of Japan 
B) the Bank of England 
C) the Federal Reserve System 
D) All of the above are correct. 
A) the Bank of Japan 
B) the Bank of England 
C) the Federal Reserve System 
D) All of the above are correct.

Question 11

Which of the following is not a reason the New York Federal Reserve Bank president always gets to vote at the Federal Open Market Committee meetings?

Accepted Answer

A) New York is the traditional financial center of the U.S.economy. 
B) All Fed purchases and sales of bonds go through the New York Fed's trading desk. 
C) New York has higher population than other cities in the U.S. 
D) All of the above are reasons. 
A) New York is the traditional financial center of the U.S.economy. 
B) All Fed purchases and sales of bonds go through the New York Fed's trading desk. 
C) New York has higher population than other cities in the U.S. 
D) All of the above are reasons.

Question 12

Which of the following individuals serve a four-year term?

Accepted Answer

A) the members of the Board of Governors 
B) the Chair of the Board of Governors 
C) the members of the FOMC 
D) All of the above are correct. 
A) the members of the Board of Governors 
B) the Chair of the Board of Governors 
C) the members of the FOMC 
D) All of the above are correct.

Question 13

The Federal Open Market Committee meets approximately

Accepted Answer

A) every three weeks 
B) every six weeks 
C) every 3 months 
D) every 6 months. 
A) every three weeks 
B) every six weeks 
C) every 3 months 
D) every 6 months.

Question 14

Which of the following entities actually executes open-market operations?

Accepted Answer

A) the Board of Governors 
B) the New York Federal Reserve Bank 
C) the Federal Open Market Committee 
D) the Open Market Committees of the regional Federal Reserve Banks 
A) the Board of Governors 
B) the New York Federal Reserve Bank 
C) the Federal Open Market Committee 
D) the Open Market Committees of the regional Federal Reserve Banks

Question 15

At the Federal Reserve,

Accepted Answer

A) the nation's monetary and fiscal policies are made by the Federal Open Market Committee,which meets about every six weeks. 
B) the nation's monetary and fiscal policies are made by the Federal Open Market Committee,which meets twice a year. 
C) the nation's monetary policy is made by the Federal Open Market Committee,which meets about every six weeks. 
D) the nation's monetary policy is made by the Federal Open Market Committee,which meets twice a year. 
A) the nation's monetary and fiscal policies are made by the Federal Open Market Committee,which meets about every six weeks. 
B) the nation's monetary and fiscal policies are made by the Federal Open Market Committee,which meets twice a year. 
C) the nation's monetary policy is made by the Federal Open Market Committee,which meets about every six weeks. 
D) the nation's monetary policy is made by the Federal Open Market Committee,which meets twice a year.

Question 16

The members of the Federal Reserve's Board of Governors

Accepted Answer

A) are appointed by the president of the U.S.and confirmed by the U.S.Senate. 
B) serve six-year terms. 
C) are also the presidents of the regional Federal Reserve banks. 
D) share power equally,with no governor having any more influence or power than any other governor. 
A) are appointed by the president of the U.S.and confirmed by the U.S.Senate. 
B) serve six-year terms. 
C) are also the presidents of the regional Federal Reserve banks. 
D) share power equally,with no governor having any more influence or power than any other governor.

Question 17

When conducting an open-market sale,the Fed

Accepted Answer

A) buys government bonds,and in so doing increases the money supply. 
B) buys government bonds,and in so doing decreases the money supply. 
C) sells government bonds,and in so doing increases the money supply. 
D) sells government bonds,and in so doing decreases the money supply. 
A) buys government bonds,and in so doing increases the money supply. 
B) buys government bonds,and in so doing decreases the money supply. 
C) sells government bonds,and in so doing increases the money supply. 
D) sells government bonds,and in so doing decreases the money supply.

Question 18

Which group within the Federal Reserve System meets to discuss changes in the economy and determine monetary policy?

Accepted Answer

A) the Board of Governors 
B) the FOMC 
C) the regional Federal Reserve Bank presidents 
D) the Central Bank Policy Commission 
A) the Board of Governors 
B) the FOMC 
C) the regional Federal Reserve Bank presidents 
D) the Central Bank Policy Commission

Question 19

Monetary policy affects employment

Accepted Answer

A) only in the long run. 
B) only in the short run. 
C) in both the long run and the short run. 
D) in neither the long run nor the short run. 
A) only in the long run. 
B) only in the short run. 
C) in both the long run and the short run. 
D) in neither the long run nor the short run.

Question 20

Which of the following statements regarding the Federal Open Market Committee is correct?

Accepted Answer

A) Only the five voting regional Fed presidents attend the meetings. 
B) All regional Fed presidents attend and vote at the meetings. 
C) All regional Fed presidents attend the meetings,but only five get to vote. 
D) Regional Fed presidents may neither attend nor vote the meetings. 
A) Only the five voting regional Fed presidents attend the meetings. 
B) All regional Fed presidents attend and vote at the meetings. 
C) All regional Fed presidents attend the meetings,but only five get to vote. 
D) Regional Fed presidents may neither attend nor vote the meetings.

Exam 16: The Monetary System: The Federal Reserve System

Which of the following is not a central bank?

The Federal Reserve

Which of the following is not correct?

The New York Federal Reserve Bank

Which of the following groups is largely responsible for carrying out the Fed's tasks of regulating banks and ensuring the health of the financial system?

The Federal Reserve was created

Economists call an institution designed to oversee the banking system and regulate the quantity of money in the economy

Which government body is primarily responsible for regulating banks and ensuring the health of the banking system?

Who can vote on Federal Open Market Committee decisions?

Which of the following institutions is a central bank?

Which of the following is not a reason the New York Federal Reserve Bank president always gets to vote at the Federal Open Market Committee meetings?

Which of the following individuals serve a four-year term?

The Federal Open Market Committee meets approximately

Which of the following entities actually executes open-market operations?

At the Federal Reserve,

The members of the Federal Reserve's Board of Governors

When conducting an open-market sale,the Fed

Which group within the Federal Reserve System meets to discuss changes in the economy and determine monetary policy?

Monetary policy affects employment

Which of the following statements regarding the Federal Open Market Committee is correct?

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion