Question

12) Which of the following is an entity of the Federal Reserve System? A) The U.S. Treasury Secretary B) The FOMC C) The Comptroller of the Currency D) The FDIC 13) The Federal Reserve Banks are institutions since they are owned by the A) quasi-public; private commercial banks in the district where the Reserve Bank is located B) public; private commercial banks in the district where the Reserve Bank is located C) quasi-public; U.S. Treasury D) public; U.S. Treasury 14) The president from which Federal Reserve Bank always has a vote in the Federal Open Market Committee? A) Philadelphia B) Boston C) San Francisco D) New York to set monetary policy 15) Goal independence is the ability of A) the central bank; goals B) Congress; goals C) Congress; instruments D) the central bank; instruments 16) The sum of the Fed's monetary liabilities and the U.S. Treasury's monetary liabilities is called A) the money supply. B) the monetary base. C) currency in circulation. D) bank reserves. 17) From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, the huge expansion in the Fed's balance sheet and the monetary base did not result in a large increase in monetary supply because A) most of it just flowed into holdings of excess reserve. B) the Fed also increased the required reserve ratio. C) the Fed also conducted open market sales. D) the discount loan decreased.

Answer 1

12. There are three main entities of the Federal Reserve System:

(a) The Federal Reserve Board of Governors

(b) The Federal Open Market Committee

(c) The Federal Reserve Banks

So, the correct answer is 'Option C' because from the given options only the Federal Open Market Committee (FOMC) is an entity of the Federal Reserve System. It helps in maintaining the stability in the financial system of the U.S. and make decisions to maintain the health of the economy which helps in economic growth.