Chapter 14

Question 1

The members of the Board of Governors are appointed by

Answer 1

The President

Question 2

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

Answer 2

The Federal reserve District Bank in Minneapolis.

Question 3

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.

Answer 3

D.

Question 4

The purpose of establishing the Federal Reserve System was

Answer 4

D. All are correct

Question 5

When there is a great deal of inflation the Fed will

Answer 5

Sell securities on the open market.

Question 6

Required reserves are

Answer 6

A. Equal to total reserves minus excess reserves.

Question 7

The most powerful individual in the federal reserve system is the

Answer 7

Chairman of the FRB

Question 8

He federal Open Market Committee has _____ members.

Answer 8

12

Question 9

Which statement is true about the central bank?

Answer 9

The USA has had a central bank since 1913.

Question 10

The rate of growth of our money supply is controlled by

Answer 10

The Federal reserve

Question 11

Which statement is true about reserves?

Answer 11

Actual reserves -required reserves =excess reserves

Question 12

Our currency is issues by ?

Answer 12

The Federal reserve

Question 13

Bank panic were the result of

Answer 13

Depositors attempting to withdrawal more deposits than the bank held in reserves.

Question 14

The US did not have a central bank until

Answer 14

1914

Question 15

There are —– members of the Board of Governors of the FR; each serving one —— year term.q m

Answer 15

7;14

Question 16

All of the nations institutions came under he jurisdiction of the FR in

Answer 16

1980

Question 17

The Fed OPen Market Committee is made up of all of the following except

Answer 17

President

Question 18

The board of governors of the Fed Reserve does each of the following except

Answer 18

Serve on the Board at the pleasure of the President

Question 19

The main job of the Fed is to

Answer 19

Control the rate of growth of the money supply

Question 20

When the Fed wants to increase the money supply it

Answer 20

Buys US government securities

Question 21

Which is not a job of the Federal reserve

Answer 21

Insuring bank deposits

Question 22

In order to buy securities the Fed offers

Answer 22

A high price and drives down interest rates

Question 23

The board of governors of the Federal Reserve is independent of

Answer 23

Both President and congress

Question 24

Which statement is true about the Fed’s Governing Board?

Answer 24

None of the statements are true.