Econ Final Ch.14

Which of the following services is performed by the regional Federal Reserve banks?

Regional Fed banks are responsible for all of the following except:

Members of the Board of Governors are:

Which of the following provides evidence that the Federal Reserve System is politically insulated?

Which of the following is responsible for the Fed's daily activity in financial markets?

All of the following are tools available to the Fed for controlling the money supply except:

_____________ can be altered to change the lending capacity of the banking system.

Changing the reserve requirement is:

The federal funds rate is the interest rate charged when:

If excess reserves are too large, a bank is likely to:

if a bank does not have enough reserves to satisfy the reserve requirement, it is likely to do any of the following except:

Discounting refers to the Fed's practice of:

A reduction in the discount rate:

The Fed is most likely to pursue:

When the Fed wishes to increase the reserves of the member banks, it:

If the annual interest rate printed on the face of a bond is 16 percent, the face value of the bond is $1,000, and the current market price of the bond is $200, what is the current yield on the bond?

If the Fed wants to sell more government bonds than people are willing to buy, then the Fed should:

If market interest rates rise, the selling price of existing bonds in the market will, ceteris paribus:

The Fed can decrease the federal funds rate by:

If the Fed wants to increase the lending capacity of the system by $60 billion and the reserve requirement is 10 percent, it should:

A banks that has excess reserves can earn additional income by lending the money overnight:

The Federal Open Market Committee impacts the economy through open market operations.

If banks do not have enough reserves to satisfy the reserve requirement, they can borrow additional reservesin the federal funds market.

The primary objective of Fed open market activity is to alter the price of bonds and their yields.