20 Questions
Each district of the Federal Reserve System has one main Federal Reserve Bank and no branch banks.
False
The Federal Reserve System comprises of only one Reserve Bank in total.
False
Each Reserve Bank appoints a baker to the Federal Advisory Council.
False
The Fed's goal is to maintain an unhealthy U.S. economy.
False
Inflation occurs when there is a trend of general price decreases throughout the economy.
False
The Fed uses four tools to implement its monetary policy, including reserve requirements, interest rates, open market operations, and foreign exchange interventions.
False
Banks are required to maintain 100% of their deposits on reserve in their own vaults.
False
The Depository Institutions Deregulation and Monetary Control Act of 1980 applied different reserve requirements to commercial banks compared to Federal Reserve members.
False
The Federal Reserve System was established in the year 1913.
True
The Board of Governors is responsible for making monetary policy decisions within the Federal Reserve System.
True
What is the main purpose of the federal government's fiscal policy in influencing real estate finance?
To lower the cost of borrowing mortgage funds
How does the federal government manage its finances through fiscal policy?
By raising revenue and managing debt
What is a consequence of a federal deficit in terms of financing?
Issuing interest-bearing securities to cover the shortfall
Who establishes federal tax laws and the budget according to the text?
The President and Congress
How does the federal government influence the cost of money directly through monetary policy?
By controlling money supply
What does a federal deficit indicate about the government's spending compared to its revenue?
It reveals that government spending exceeds revenue collected
In what way does the U.S. Treasury Department manage the federal government's finances?
By issuing interest-bearing securities to cover deficits
How does the federal government finance a shortfall when it spends more than it collects?
By issuing interest-bearing securities to investors
Who is responsible for implementing fiscal policy in the United States?
The President and Congress together
What is the primary aim of the Federal Reserve's monetary policy?
To maintain a stable money supply and control the cost of money
Test your knowledge on the open market operations conducted by the Federal Reserve System, specifically focusing on the role of the Federal Open Market Committee (FOMC), the Securities Department of the Federal Reserve Bank of New York, and the buying and selling of government securities.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
