Reference no: EM131947572
1. Since 2009, congress has given the Fed new policy tools, most notable the authority to
a. Pay interest on bank reserve
b. Close the stock market if trading becomes ‘disruptive”
c. Require banks to give first priority in lending to consumers and business firms that have deposits in their banks
d. All the above
2. Open market operations work effectively and efficiently because
a. Are conducted through dealer firms, not banks
b. Involve highly liquid and highly coveted US treasury securities
c. Change bank reserves and the money supply instantly
D. All of the above
3. A state-chartered bank that is a member of the federal reserve
a. Gets an annual return of 6% on its holdings of reserve bank stock
b. is examined by the federal reserve
c. Elects one of the nine directors that oversee the reserve bank in its district
d. all the above
4. The Federal Reserve’s reserve required power includes the authority to
a. Determine which bank liabilities are subject to reserve requirements
b. Impose reserve requirements on mutual funds
c. Eliminate reserve requirements for small banks
d. All the above
5. The federal reserve has the power to change
a. A reserve requirement
b. Stock market margin requirement
c. Capital requirement for large banks
d. All the above