Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
76 Cards in this Set
- Front
- Back
|
deposits should expand when reserve requirements increase |
f |
|
|
the feds most influential tool is reserve requirements |
f |
|
|
federal reserve regulations affect many nonbank institutions |
t |
|
|
depistitory institutions create money when the lend or invest excess reserves |
t |
|
|
the federal open market committee basically establishes our national monetary policy |
t |
|
|
a primary function of the fed is economic stabilization via control of the money supply |
t |
|
|
the federal reserve is independently funded and thus immune to any political pressure |
f |
|
|
in the check clearing system DACI usually exceeds CIPC, creating fed float |
f |
|
|
a decrease in federal reserve float decreases member banks reserves |
t |
|
|
currency is an asset of the federal reserve banks |
f |
|
|
a decrease in reserve requirements increases the total level of member bank reserves |
f |
|
|
an increase in the money supply does not affect the supply of loanable funds |
f |
|
|
open market purchases by the fed reduce total reserves in the banking system |
f |
|
|
monetary policy is highly partisan issue |
t |
|
|
the fed can change the level of member bank reserves as well as reserve requirements |
t |
|
|
the first impact of monetary policy upon depository institutions is via excess reserves |
t |
|
|
deposits should expand when the fed sells securities |
f |
|
|
the discount rate is a direct control on the money supply |
f |
|
|
the fed is this nations first permanent central bank |
t |
|
|
the federal reserve system replaced the national banking system |
f |
|
|
congress is powerless over the fed |
f |
|
|
excess reserve balances pay interest; requires reserve balances do not |
f |
|
|
open market operations are the primary tool of monetary policy today |
t |
|
|
a fed governor has a life appointment |
f |
|
|
as the fed expands the monetary base, bank loans and investments should expand also |
t |
|
|
though decentralized in geography, todays fed is highly centralized in power strucutre |
t |
|
|
reserve requirements are not considers a viable tool of monetary policy |
t |
|
|
the monetary base comprises the feds most important assets |
f |
|
|
the federal reserve bank of NY is the headquarters of open market operations |
t |
|
|
no two governors may by from the same federal reserve district |
t |
|
|
reserve requirement apply only to member banks in federal reserve system |
f |
|
|
the chairman of the fed is highly visible, but not very powerful |
f |
|
|
all national banks must join the federal reserve system |
t |
|
|
margin requirements are an important regulatory power of the fed |
t |
|
|
excess reserves cost a depository institution nothing to maintain |
f |
|
|
the monetary base comprises currency in circulation and checks not yet cleared |
f |
|
|
the major asset of the federal reserve is the US treasury securities, and the major liability is currency outside the banks |
t |
|
|
the seven members of the Board of Governors of the federal reserve system serve 14 year nonrenewable terms. Each board member is appointed by the president and confirmed by the senat |
t |
|
|
the current chair of the federal reserve is joe biden |
f |
|
|
if the FOMC wished to slow down economic growth and lower down the price level, they could issue a policy directive to the federal reserve board trading desk to government securities |
f |
|
|
number of federal reserve governors plus size of FOMC less number of federal reserve banks equals |
7 |
|
|
which of the following can be associated with original objectives of the fed |
all of the above |
|
|
the primary responsibility of the federal open market committee(FOMC) is to |
set monetary policy |
|
|
total reserves 80,000,000 reserve requirement 5% total deposits 700,000,000 using the data above, the level of excess reserves is |
45,000,000 |
|
|
the data above exemplify |
all of the above |
|
|
the data above could exemplify a direct, intermediate effect of any of the following except |
an open market sale by the fed |
|
|
the asset of federal reserve banks associated with open market operations is |
us government securities |
|
|
the treasury draws most of its checks upon |
federal reserve banks |
|
|
for what purposes do depository institutions keep deposits in the federal reserve banks |
for clearing checks... and to satisfy reserve requirements |
|
|
federal reserve notes held in bank vaults are the liability or obligation fo |
the fed |
|
|
federal reserve float |
represents a net extension of credit by the fed, which increases bank reserves |
|
|
when the NY fed sells treasury securities to a securities dealer |
depository institutions deposits in the fed decrease.... and the deposit balance of the security dealer in its bank decreases |
|
|
which fed action does not directly increase total reserves in the banking system |
lowering the discount rate |
|
|
to increase the money supply immediately but just slightly, the fed would most likely |
buy securities on the open market |
|
|
reserve requirements apply to |
all of the able |
|
|
the feds primary tools of monetary policy include all the following except |
changes in the federal funds rate |
|
|
the 12 federal reserve banks are |
important components of the fed, but no longer very autonomous |
|
|
the purchase of government securities by the fed will |
increase security prices |
|
|
which of the following is in the correct historical order |
second bank of the united states, national banking acts, federal reserve act |
|
|
the feds most visible monetary tool is probably |
discount rate policy |
|
|
the feds non monetary or regulatory powers do not include |
investigation and persecution of counterfeiting |
|
|
which of the following was a responsibility of the early federal reserve system |
all of the above |
|
|
the federal reserve system established |
source of liquidity for the banking system |
|
|
increases in the feds assets |
increase the monetary base |
|
|
which of the following can be associated with the modern objectives of the fed |
all of the above |
|
|
reforms and regulatory changes in US financial institutions are best associated with |
periods of sever economic and financial problems in the us economy |
|
|
who among the following does not have a permanent bot on the FOMC |
chairman, board of governors |
|
|
There are___ members of the federal reserve board of governors,____ members of the federal Open market committee, and ___ federal reserve banks |
7,12,12 |
|
|
all of the following are locations of federal reserve banks except |
washington dc |
|
|
an increase in federal reserve float |
increases bank reserve depoisits in the fed |
|
|
the discount window |
relates to the feds lender of last resort function |
|
|
the fed most important duty is to |
establish the nations monetary policy |
|
|
the major asset of the federal reserve is |
the US treasury securities |
|
|
the fed changes reserve requirements from 10% to 7% thereby creating 900 million excess reserves. The goal change in deposits ( with no drains) would be |
12,857 |
|
|
nationally chartered banks receive chattering and merger approval from the |
Office of comptroller of the currency |
|
|
the fed funds rate is the rate that |
banks charge to lend foreign exchange to customers |
