Chapter 14 Flashcards
The members of the Board of Governors are appointed by
The President
A women 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.
Which statement is true? A.The chairman of FRB is appointed for 14years
B.The chairman may be fired by Pres.
C.Most presidents get to appoint all members of the FRB.
D. None of statements are true.
D.
The purpose of establishing the Federal Reserve System was
D. All are correct
When there is a great deal of inflation the Fed will
Sell securities on the open market.
Required reserves are
A. Equal to total reserves minus excess reserves.
The most powerful individual in the federal reserve system is the
Chairman of the FRB
He federal Open Market Committee has _____ members.
12
Which statement is true about the central bank?
The USA has had a central bank since 1913.
The rate of growth of our money supply is controlled by
The Federal reserve
Which statement is true about reserves?
Actual reserves -required reserves =excess reserves
Our currency is issues by ?
The Federal reserve
Bank panic were the result of
Depositors attempting to withdrawal more deposits than the bank held in reserves.
The US did not have a central bank until
1914
There are —– members of the Board of Governors of the FR; each serving one —— year term.q m
7;14
All of the nations institutions came under he jurisdiction of the FR in
1980
The Fed OPen Market Committee is made up of all of the following except
President
The board of governors of the Fed Reserve does each of the following except
Serve on the Board at the pleasure of the President
The main job of the Fed is to
Control the rate of growth of the money supply
When the Fed wants to increase the money supply it
Buys US government securities
Which is not a job of the Federal reserve
Insuring bank deposits
In order to buy securities the Fed offers
A high price and drives down interest rates
The board of governors of the Federal Reserve is independent of
Both President and congress
Which statement is true about the Fed’s Governing Board?
None of the statements are true.
