Finance Test 4 Set 3

Front 1

prior to meetings the FOMC members receive a national economic forecast for the next two years known as

Back 1

green book, beige book, blue book

Front 2

the green book is prepared by the board staff where the beige book is prepared by

Back 2

reserve banks

Front 3

the beige book is -------

Back 3

public

Front 4

the purchases and sales of securities in financial markets by the fed, the dominant means by which the fed changes the monetary base.

Back 4

open market operations

Front 5

the fed generally conducts open market operations in liquid ---- -------- markets.

Back 5

treasury securities

Front 6

open market PURCHASES tend to REDUCE interest rates and so are viewed as

Back 6

expansionary

Front 7

open market SALES tend to INCREASE interest rates and so are viewed as

Back 7

contractionary

Front 8

a group of traders at the federal reserve bank of new york, that trades government securities over the counter electronically with -------- -------

Back 8

the open market trading desk, primary dealers

Front 9

are private securities firms selected by the fed that trade government securities and are permitted to trade directly with the fed

Back 9

primary dealers

Front 10

issued when the FOMC meets 8 times per year. states its overall objectives for interest rates.

Back 10

general directive

Front 11

who is responsible for carrying out open market operations that fullfill teh FOMC's objectives?

Back 11

the federal reserve system's account manager (a vice president of the federal reserve bank of new york)

Front 12

open market operations that are intended to CHANGE monetary policy as desired by the FOMC are known as

Back 12

dynamic transactions

Front 13

used by the FED to offset the effects of disturbances to the monetary base, not to change monetary policy.

Back 13

defensive transactions