Reference no: EM131037777
1. Which of the following are objectives that the Federal Reserves tries to achieve when setting money. Choose all that apply.a.zero inflation b. Economic growth c.Zero unemployment d. Interest rate stability e.Price stability
2. Which of the following contributes to making the Federal Reservean "Independent" policymaking body? a. There are 12 different Federal Reserve banks b. Its role written into the U.S.Constitution c.Members of the Board of Government are appointed for 14- year terms
3. Suppose that the Federal Reserve has set the required reserve ratio at 0.20.Best National Bank currently has $150,000 in checkable deposits of $45,000 in outstanding loans. Use this information to determine the Best National. a.Reserves amount $39,000,$105,000,$30,000 or $195,000 b.Required Reserve amount a.$39,000,$21,000,$30,000 or $9,000 c.Excess Reserve amount $9,000,$30,000,$75,000 or $105,000
4.There are a.12 b.7 or c.5 members of the Federal Reserve Board of Governors.
5. Which of the following is a responsibility of the Federal Open Market Committee(FOMC)?a.buying and selling stocks b. making decisions regarding monetary policy c. issuing mortages to homeowners
6. The Federal Reserve's primary tool for changing the money supply is a. the reserve requirement b.open market operations c.the discount rate. In order to increase the number of dollars in the U.S. e conomy(the money supply), the Federal Reserve will a. buy b. sell U.S. Government bonds.
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