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)
2
Q
How many members of the FOMC is the Board of Governors?
A
7 members
3
Q
How many bank presidents vote on the FOMC?
A
5 presidents
4
Q
The ability of the central bank to set monetary policy instruments.
A
Instrument independence
5
Q
The ability of the central bank to set the goals of monetary policy.
A
Goal independence
6
Q
What are the three players in the money supply?
A
- Central bank
- Banks
- Depositors
7
Q
When banks clear checks for banks, crediting the amount before it debits.
A
Float
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
