Checkup 2 Flashcards
The Federal Reserve System was established by the _______________ in 1913.
Federal Reserve Act
The most influential component of the Federal Reserve System is the ______________________________________.
Board of Governors
The Federal Reserve System has ______________ branch banks.
twenty-four
Member banks must own ______________ in the Federal Reserve Banks.
stock
The primary purpose of the Federal Reserve System is to ________________________________________________________________________________________.
foster the economic well-being of our country by promoting the stability and integrity of the financial sector.
The Fed achieves its goals through its impact on __________________________.
monetary policy
The Fed stimulates or retards business activity by affecting the supply of loanable funds and/or the ________________ charged for loans.
interest rate
An overabundant money supply will usually encourage _________________.
inflation
The President of the New York Reserve Bank is always a member of the ______________________________.
Federal Open Market Committee
____________________ appoints the Class C directors of a district bank.
The Board of Governors
If the Federal Reserve System sought to stimulate the economy, it might _________________ the discount rate, or _______ securities in the open market, or _________ reserve requirements.
lower; buy; lower
Four bodies that act as supervisors of commercial bank structure and activity are the:
Federal Reserve System, Comptroller of the Currency, Federal Deposit Insurance Corporation, state agencies
Who issues national bank charters?
Comptroller of Currency
They are appointed by the President of the United States.
members of Board of Governors
recipient of majority of FRS earnings
United States Treasury
