Question 1

What are the primary arguments for and against the independence of the Fed?

Accepted Answer

The main argument for the Fed's independ...

Question 2

What are the three books to which the FOMC has access and what information is included in each?

Accepted Answer

The Green Book contains a national econo...

Question 3

How many Federal Reserve districts are there?

Accepted Answer

A)   1
B)   2
C)   12
D)   50

Question 4

The Banking Acts of 1933 and 1935

Accepted Answer

A)   established the Federal Reserve System.
B)   increased central control of the Federal Reserve System.
C)   eliminated the authority of the Board of Governors to set reserve requirements.
D)   made the Secretary of the Treasury a member of the Board of Governors.

Question 5

What is the length of a term for the Chairman of the Board of Governors?

Accepted Answer

A)   one year
B)   four years
C)   14 years
D)   28 years

Question 6

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

Accepted Answer

A)   between bankers and business interests
B)   among states and regions
C)   between importers and exporters
D)   between government and the private sector

Question 7

Which of the following statements is correct?

Accepted Answer

A)   The Fed is fully insulated from external pressures due to the long terms that members of the Board of Governors serve.
B)   The Fed is fully insulated from external pressures because it does not need to go through the normal congressional appropriations process.
C)   The Fed is fully insulated from external pressures because it has a constitutional mandate.
D)   The Fed is only partially insulated from external pressures.

Question 8

Federal Reserve districts

Accepted Answer

A)   conform to state boundaries.
B)   group together economically similar states.
C)   have equal populations.
D)   cut across state and economic boundaries.

Question 9

The original intent of the Federal Reserve Act of 1913 was to provide the Fed with what role?

Accepted Answer

A)   regulator of the banking system
B)   lender of last resort
C)   manage the exchange rate
D)   maintain a balanced budget

Question 10

The Chairman of the Federal Open Market Committee is also

Accepted Answer

A)   the president of the Federal Reserve Bank of New York.
B)   the chairman of the Securities and Exchange Commission.
C)   the chairman of the Federal Deposit Insurance Corporation.
D)   the chairman of the Board of Governors.

Question 11

The president of which Federal Reserve Bank is always a voting member of the Federal Open Market Committee?

Accepted Answer

A)   Philadelphia
B)   Boston
C)   Chicago
D)   New York

Question 12

Which president failed to renew the charter of the Second Bank of the United States?

Accepted Answer

A)   George Washington
B)   Andrew Jackson
C)   Franklin Roosevelt
D)   Lyndon Johnson

Question 13

The Beige Book is prepared by

Accepted Answer

A)   district banks.
B)   the Board of Governors.
C)   FOMC staff members.
D)   the Commerce Department.

Question 14

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed?

Accepted Answer

The Government Accountability Office was...

Question 15

The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture are known as

Accepted Answer

A)   Class A directors.
B)   Class B directors.
C)   Class C directors.
D)   Class D directors.

Question 16

The European Central Bank is responsible for the monetary policy of

Accepted Answer

A)   the 5 largest European economies.
B)   all countries on the continent of Europe.
C)   all 28 countries in the European Union.
D)   the 19 sovereign countries that use the euro as their currency.

Question 17

What was the original intent of the Federal Reserve Act of 1913?

Accepted Answer

The original intent was to cre...

Question 18

The chair of the Federal Reserve is

Accepted Answer

A)   chosen by the members of the Board of Governors.
B)   chosen by the president.
C)   elected by Congress.
D)   the Treasury Secretary.

Question 19

As of 2015,the dividend the Fed pays to member banks with assets greater than $10 billion is

Accepted Answer

A)   2%.
B)   6%.
C)   the lesser of 6% or the interest rate on 10-year Treasury notes.
D)   the greater of 6% or the interest rate on 10-year Treasury notes.

Question 20

Which of the following statements is NOT true?

Accepted Answer

A)   The U.S. Constitution does not explicitly give the federal government the authority to establish a central bank.
B)   The U.S. Constitution states that Congress has the power "To coin money [and] regulate the value thereof."
C)   Congress delegated the power to coin money and regulate its value to the Federal Reserve in the Federal Reserve Act.
D)   The federal courts have never upheld the constitutionality of the Federal Reserve Act.

Exam 13: The Federal Reserve and Central Banking

Federal Reserve districts

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The members of Federal Reserve district bank boards of directors who are leaders in industry,commerce,and agriculture are known as

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What was the original intent of the Federal Reserve Act of 1913?

Correct AnswerverifiedThe original intent was to cre...View AnswerShow Answer

The Chairman of the Federal Open Market Committee is also

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How many Federal Reserve districts are there?

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What is the length of a term for the Chairman of the Board of Governors?

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How did the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 affect the Fed?

Correct AnswerverifiedThe Government Accountability Office was...View AnswerShow Answer

Which of the following statements is correct?

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As of 2015,the dividend the Fed pays to member banks with assets greater than $10 billion is

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The chair of the Federal Reserve is

Correct AnswerverifiedShow Answer

Which of the following is NOT a way in which power was divided up in the Federal Reserve System?

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The original intent of the Federal Reserve Act of 1913 was to provide the Fed with what role?

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Which president failed to renew the charter of the Second Bank of the United States?

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Which of the following statements is NOT true?

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The Beige Book is prepared by

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The Banking Acts of 1933 and 1935

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What are the three books to which the FOMC has access and what information is included in each?

Correct AnswerverifiedThe Green Book contains a national econo...View AnswerShow Answer

What are the primary arguments for and against the independence of the Fed?

Correct AnswerverifiedThe main argument for the Fed's independ...View AnswerShow Answer

The president of which Federal Reserve Bank is always a voting member of the Federal Open Market Committee?

Correct AnswerverifiedShow Answer

The European Central Bank is responsible for the monetary policy of

Correct AnswerverifiedShow Answer

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The original intent was to cre...
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The Government Accountability Office was...
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The Green Book contains a national econo...
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Correct Answer
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The main argument for the Fed's independ...
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Correct Answer
verified

Correct Answer
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