12
Raising or lowering the prime lending rates
Raising or lowering the discount rate
Conducts open market operations
Both A and C
Both B and C
The federal reserve conducts fiscal policy to manage inflation and maximize employment
Answer: True. The Federal Reserve conducts monetary policy by managing short-term interest rates and thus influencing the availability and cost of credit in any economy. Monetary policy, directly and indirectly, influences spending, investment, production, employment, and inflation in the country
How many federal reserve banks are there across the united states
Answer: There are 12 Federal Reserve Banks each responsible for member banks located in its district
The federal reserve has various tools to impact the economy, which one(s) are listed below
Raising or lowering the prime lending rates
Raising or lowering the discount rate
Conducts open market operations
Both A and C
Both B and C
Answer:
The Federal Reserve can use four tools to achieve monetary policy goals: reserve requirements, the discount rate, open market operations, and interest on reserves. All four affect the amount of funds in the banking system.
Hence Both B and C are correct
The federal reserve conducts fiscal policy to manage inflation and maximize employment true, false How many federal...
18. FINANCIAL INSTITUTIONS End of Chapter Quiz Answer True (T) or False (F): 1. Financial institutions are businesses that store money for customers and lend money to customers. 2. In order to earn the most profit. most financial institutions loan out all the money that their customers deposit. and processing checks is called interest. ness and pay their owners a profit. 3. The fees financial institutions charge customers for storing money 4. Financial institutions use the money they earn to...
The reserve requirement sets the required percentage of vault cash plus deposits with the regional Federal Reserve Banks that banks must keep for their deposits. Many banks have widespread branches and ATMs. How would the existence of branches and ATMs affect the level of excess reserves (above those required) that banks are able to hold? ATMs require a lot of vault cash, thus increasing excess reserves. ATMs increase excess reserves, which increases the money multiplier. The existence of ATMs does...
28 The Chairman or Chairlady of the Federal Reserve Bank has the power to personally order an increase in the U.S. money supply. A vote by the Fed's FOMC is not needed in order to increase the nation's money supply. 2016.05 Multiple Choice This is false This is true only if both the President of the United States and treat of the Freneha bebes to increase the nation's money supply, then the FOMC no need None of the above Free...
10 Question 1 A community bank is devoted primarily to the markets of: locally based deposits & loans deposits all over the USA loans all over the USA international markets 10p Question 2 The large money centered banks serve many different markets with many services and are diversifie both geographically and by product lines. True False Question 3 Electronic Branches do not include ATM's POS Terminals and personal computers. True False Question 4 One of the largest bank holding companies...
QUESTION 1 Commercial bank reserves held at a Federal Reserve Bank are a liability of the commercial bank and an asset of the Federal Reserve. True False QUESTION 2 During normal economic times, the Federal Reserve has primarily influenced overall financial conditions by adjusting the federal funds rate. The Fed Funds rate is the rate the U.S. Government charges banks for short term credit. True False QUESTION 3 Everything else held constant, a decrease in holdings of excess reserves will...
50) The Federal Open Market Committee A) is the main policy-making organ of the Federal Reserve. B) is headed by the president of the New York Federal Reserve Bank. C) consists of the Fed chairman and the 12 regional bank presidents. D) meets every week to review the state of the economy 50) 51) When the quantity of money demanded is greater than the quantity of moneyupplied, people 1) bonds and the interest rate A) buy; falls B) sell; falls...
1.The Fed purchases $100,000 of U.S. government securities from One Bank. Assuming the desired reserve ratio is 10 percent, banks loan all excess reserves, and the currency drain is 20 percent, how much does the quantity of money increase? A. $1,000,000 B. $10,000,000 C. $1,100,000 D. $900,000 E. $100,000 2.A bank maximizes its stockholders' wealth by ______. A. colluding with other banks to keep interest rates high colluding with other banks to keep interest rates high B. lending for long...
ers 14,16,+ PP (07/30) Saved Help Sav If the Federal Reserve Bank lowered the interest rate on the IOER, then this would incentivize banks to lend more money True or False True False rs 14,16,+ PP (07/30) Saved Help Save & Exit In our audio-visual lecture we discussed that two politicinas wrote the Community Reinvestment Act of 1995, which forced banks to loosen their lending standards. That law set the stage for the disasterous results of the sub-prime mortgage crisis....
18 Congress has the legal right to force the Federal Reserve Bank to accept and carry out their suggested recommendations regarding Monetary Policy. 8 03:57:44 True or False True False 19 The Federal Reserve Bank is the chief regulatory agency among all of the financial regulatory agencies like the SEC, FDIC, etc... The Federal Reserve Bank has the most regulatory power. 03:57:40 Multiple Choice This is foise - the US Treasury Department has the most regulatory power in the U.S....
sters 14,16,+ PP (07/30) 0 Saved H The Federal Reserve Bank must follow the orders of which international monetary institution? Multiple Choice None of the above. The Fed is an independent private bank and can do whatever they wish. The World Trade Organization The International Monetary Fund (IMF) The World Bank Why dont't bankers like borrowing money from the Fed's Discount Window when they find themselves in financil trouble? Multiple Choice Because the interest rates from the Fed's Discount Window...