Question

1. The U.S. central bank that sets monetary policy and regulates the U.S. banking system is known as the:

   Select the correct answer

   1. Regional Central Bank

   2. The Federal Reserve

   3. Bank of New York

   4. The Congress

2. Question 2

   5 Points

   Which of the following is not a component of the Fed System?

   Select the correct answer

   1. Member Banks

   2. Federal Reserve District Banks

   3. Federal Open Market Committee

   4. Regional Committee

3. Question 3

   5 Points

   The function of setting reserve requirements and supervising member banks is performed by:

   Select the correct answer

   1. Board of Governors

   2. Advisory Committee

   3. Federal Reserve Banks

   4. Federal Open Market Committee

4. Question 4

   5 Points

   The function direct market operations, which consists of buying and selling securities, to control the monetary policy is performed by:

   Select the correct answer

   1. Board of Governors

   2. Federal Reserve Banks

   3. Federal Advisory Committee

   4. Federal Open Market Committee

5. Question 5

   5 Points

   The primary responsibility of the Fed is to:

   Select the correct answer

   1. formulate the monetary policy

   2. boost the stock market

   3. boost the bonds market

   4. expedite the legislative process

6. Question 6

   5 Points

   Fed actions that stimulate or repress economic activity or level of prices are known as:

   Select the correct answer

   1. defensive actions

   2. dynamic actions

   3. accommodative function

   4. fiscal actions

7. Question 7

   5 Points

   Fed activities that offset unexpected monetary developments and contribute to the smooth, everyday functioning of the economy are known as

   Select the correct answer

   1. defensive actions

   2. dynamic actions

   3. accommodative function

   4. fiscal actions

8. Question 8

   5 Points

   _______________ are the Fed's efforts to meet credit needs of individuals and institutions, clearing checks, and supporting depository institutions.

   Select the correct answer

   1. defensive actions

   2. dynamic actions

   3. accommodative actions

   4. fiscal actions

9. Question 9

   5 Points

   The basic policy instruments of the Fed that allow it to increase or decrease the monetary supply are:

   Select the correct answer

   1. reserve requirements

   2. discount rate policy

   3. open-market policy

   4. all of the above

10. Question 10

    5 Points

    The current reserve requirement for banks with deposits greater than $124.2 million is:

    Select the correct answer

    1. 5% of deposits

    2. 10% of deposits

    3. 15% of deposits

    4. 20% of deposits

11. Question 11

    5 Points

    The interest rate that a bank must pay to borrow from its regional Federal reserve Bank is known as:

    Select the correct answer

    1. fed discount rate

    2. fed funds rate

    3. prime rate

    4. subprime rate

12. Question 12

    5 Points

    Interest rate on overnight loans from banks with excess reserves to banks with reserve deficits is known as:

    Select the correct answer

    1. fed discount rate

    2. fed funds rate

    3. prime rate

    4. subprime rate

13. Question 13

    5 Points

    Debt instruments with maturities of one year or less are known as:

    Select the correct answer

    1. initial public offerings

    2. private equity instruments

    3. capital market instruments

    4. money market instruments

14. Question 14

    5 Points

    Which of the following is not a money market instrument?

    Select the correct answer

    1. common stocks

    2. treasury bills

    3. commercial paper

    4. banker acceptances

15. Question 15

    5 Points

    Short-term debt obligations issued by the U.S. government are known as:

    Select the correct answer

    1. commercial paper

    2. repurchase agreement

    3. treasury bills

    4. banker acceptances

16. Question 16

    5 Points

    In a T-bills auction, _______________ get preferential allocation and agree to pay the lowest price of the winning _______________.

    Select the correct answer

    1. noncommercial bids; commercial bids

    2. noncompetitive bids; competitive bids

    3. commercial bids; noncommercial bids

    4. competitive bids; noncompetitive bids

17. Question 17

    5 Points

    The target rate in the conduct of monetary policy is:

    Select the correct answer

    1. the risk free rate

    2. the prime rate

    3. the discount rate

    4. the fed funds rate

18. Question 18

    5 Points

    A time draft payable to a seller of goods with payment guaranteed by a bank is known as:

    Select the correct answer

    1. repurchase agreement

    2. banker's acceptance

    3. negotiable certificate of deposit

    4. commercial paper

19. Question 19

    5 Points

    Which of the following are the primary participants in money market securities?

    Select the correct answer

    1. the U.S. treasury

    2. the Federal Reserve

    3. Commercial banks

    4. all of the above

20. Question 20

    5 Points

    __________ is the rate on inter-bank loans between British banks.

    Select the correct answer

    1. LIBOR

    2. EU rate

    3. Central Britain Rate

    4. Euro currency

Answer 1

1.Federal reserve

2.

3.Federal reserve bank

4.Federal open market commiteee

5.Formulate the monetary policy

6.dynamic actions

7.defencive action

8.accomodative action

9.reserve requirement

10.10% of the deposits

11.Fed discount rate

12.Fed fund rate

13.Money market instruments

14.common stock

15.Treasury bills

16.

17.discount rate

18.bankers acceptence

19.

20.LIBOR