is made up of 12 district banks and member banks

The Fed's Federal Open Market Committee

is the Fed's primary monetary policy-making body.

The FDIC was established to

protect the savings of US people

If our money was made out of gold or silver, why would it probably disappear?

it is worth more as a commodity than as currency

Unlike politicians, members of the Fed

is concerned about the long-run health of the economy

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Money, Banking and The Fed.

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Questions 19

Answers

1
Money that has an alternative use as an economic good.
wampum
specie
fiat money
commodity money
2
The potus appoints member of which group at the Fed?
Fed.
Federal Open Market Committee
Federal Advisory Council
Board of Governors
3
Members of which group in the Fed must buy stock in the Federal Reserve Bank
Member Banks
Federal Open Market Committee
Federal Advisory Council
Board of Governors
4
The Federal Reserve
was established in the 1930's
is made up of districe banks that operate without each other
is managed by a 12-member board of directors
is made up of 12 district banks and member banks
5
In the short run, an increase in the money supply results in
higher interest rates
lower interest rates
economic expansion
increased consumer spending
6
Of a bank has $2 million in Bank Deposits and the Reserve Requirement is 10%, they keep?
$200
$2000
$20000
$200000
7
Which one of the following will expand the money supply
doing nothing
raise the discount rate
raising the reserve requirement
buying bonds
8
Which of the following will contract the money supply
buying bonds
nothing
raising the discount rate
lowering the reserve requirement
9
The Fed's Federal Open Market Committee
regulates savings and loan assoc., savings banks, credit uni
is the Fed's primary monetary policy-making body.
advises the Fed on the overall health of the economy
advises the Fed on consumer credit laws
10
Money loses its value when it
becomes too portable
is divisible
becomes too plentiful
is durable
11
The FDIC was established to
help the financing of WWII
federalize the banking system
protect the savings of US people
create a government banking monopoly
12
If our money was made out of gold or silver, why would it probably disappear?
worth less than a dollar
it is worth more as a commodity than as currency
too numerous to have value as money
not real money
13
The Federal Reserve System was established in
1863
1913
1799
1881
14
Which group within the Fed decides to lower interest rates?
Board of Governors
Federal Advisory Council
Federal Reserve Bank
Federal Open Market Committee
15
When the Fed refers to M1, it is referring to such elements of the money supply as
saving deposits
traveler's checks and currency
stocks
money market funds
16
If the reserves are $1200 and the supply of money is $6000 what is the reserve %?
5%
20%
10%
15%
17
Unlike politicians, members of the Fed
recognizes high intst rates as a sign of an unhealthy econ
is concerned about the long-run health of the economy
must respond to the public
is concerned about short-term interest rates
18
Easy money policy leads to
inflation
interest rates
the reserve requirement
unemployment
19
If a bank has $3000 in reserves and the requirement is 10% what is the total supply of money?
$3000
$30,0000
$300
300,000

Money, Banking and The Fed. Flashcards | StudBud