1) True or False
A. Federal Reserve interest rate decisions can be vetoed by the U.S. president or the Congress.
True or False
B. Among the 12 Federal Reserve District the federal reserve bank of New York (FRBNY) is generally considered the most important of federal reserve banks because many of largest US. and international banks are located in the new York district?
True or False
2) Multiple Choice
1. The primary policy tool used by the Fed to meet its monetary policy goals is:
A. changing the discount rate.
B. changing reserve requirements.
C. devaluing the currency.
D. changing bank regulations.
E. open market operations.
2. The _____________ is a network linking over 9,000 banks with the Federal Reserve that is used to transfer deposits and make loan payments between participants.
A. Fedwire
B. ACH
C. CHIPS
D. NASDAQ
E. SWIFT
3. Which of the following is the major monetary policy making body of the U.S. Federal Reserve System?
A. FOMC
B. OCC
C. FRB bank presidents
D. U.S. Congress
E. Group of Eight
4. If the Fed wishes to stimulate the economy, it could
I. buy U.S. government securities.
II. raise the discount rate.
III. lower reserve requirements.
A. I and III only
B. II and III only
C. I and II only
D. II only
E. I, II, and III