Question

1) The Fed carries out its open market operations through Select one: A. the office of the Comptroller of the Currency and the largest U.S. money banks. B. the Desk of the NY District Bank and its network of authorized securities dealers. C. U.S. securities firms buying and selling stocks, bonds, and government securities. D. the New York Stock Exchange and affiliated stock brokers.

2)

The Federal Reserve is a quasi-independent government agency directly under the authority of the

Select one:

A. U.S. Congress.

B. Treasury Department.

C. Department of Justice.

D. Supreme Court.

Answer 1

1.

Option B is correct.

The Desk of the NY District Bank and its network of authorized securities dealers.

Explanation:

Open market operation of Fed is carried by Trading Desk at the Federal Reserve Bank of New York.

2.

Option A is correct.

U.S. Congress

Explanation:

The Federal Reserve derives its authority from the Congress, with the enactment of the Federal Reserve Act.