Chapter 14 Flashcards
The United States did not have a central bank until
1913.
There are _____ members of the Board of Governors of the Federal Reserve; each serves one _____ year term.
7; 14
The members of the Board of Governors are appointed by
the president.
When there is a great deal of inflation the Fed will
sell securities on the open market
Our currency is issued by
the Federal Reserve.
Which statement is true?
The United States has had a central bank since 1913.
When the Fed wants to increase the money supply it
buys U.S. government securities.
The main job of the Fed is to
control the rate of growth of the money supply.
Which is not a job of the Federal Reserve?
Insuring bank deposits
Which statement is true?
Actual reserves - required reserves = excess reserves.
Which statement is true?
None of the statements are true.
A woman in Duluth, Minnesota, bought tickets to a Minnesota Vikings game. Her check was deposited in a bank in Minneapolis. From there it went directly to
the Federal Reserve District Bank in Minneapolis.
The Board of Governors of the Federal Reserve does each of the following, except
serve on the Board at the pleasure of the President, who can make individual governors resign at any time.
Which statement is true?
Our central bank was formed in 1913.
Required reserves are
equal to total reserves minus excess reserves.
All of the nation’s financial institutions came under the jurisdiction of the Federal Reserve in
1980.
The Federal Open Market Committee has _____ members.
12.
The rate of growth of our money supply is controlled by
the Federal Reserve.
The Federal Open Market Committee is made up of all of the following, except
the president of the United States.
The Board of Governors of the Federal Reserve is independent of
both the President and Congress.
Which statement is true about the Fed’s Governing Board?
None of the statements are true about the Fed’s Governing Board.
The purpose of establishing the Federal Reserve System was
All of the choices are correct.
Bank panics were the result of
depositors attempting to withdraw more deposits than the banks held in reserve.
The most powerful individual in the Federal Reserve System is the
Chairman of the Federal Reserve Board.
In order to buy securities the Fed offers
A high price and drives down interest rates
