Exam 4 Flashcards

1
Q

Provide loans during times of financial crisis, manage payments systems, and oversee commercial banks and the financial system.

A

Central Bank (The Fed)

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2
Q

How many members of the FOMC is the Board of Governors?

A

7 members

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3
Q

How many bank presidents vote on the FOMC?

A

5 presidents

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4
Q

The ability of the central bank to set monetary policy instruments.

A

Instrument independence

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5
Q

The ability of the central bank to set the goals of monetary policy.

A

Goal independence

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6
Q

What are the three players in the money supply?

A
  1. Central bank
  2. Banks
  3. Depositors
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7
Q

When banks clear checks for banks, crediting the amount before it debits.

A

Float

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8
Q

The lending and asset-purchase programs that resulted in a huge monetary base expansion, but not the equivalent change in the money supply.

A

Quantitative Easing

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