Podcast
Questions and Answers
What is the primary function of a Primary Dealer in relation to the Federal Reserve?
What is the primary function of a Primary Dealer in relation to the Federal Reserve?
- Approving loans for individual customers.
- Regulating the nation's money supply.
- Issuing currency and coins to the public.
- Buying and selling government securities with the Federal Reserve. (correct)
How does the Federal Reserve increase the money supply by buying securities?
How does the Federal Reserve increase the money supply by buying securities?
- By selling securities directly to the public.
- By issuing Treasury bills.
- By making payments to Primary Dealers. (correct)
- By decreasing bank reserves.
What is one way the Federal Reserve can decrease the money supply?
What is one way the Federal Reserve can decrease the money supply?
- By buying government securities from the public.
- By conducting open market sales with Primary Dealers. (correct)
- By receiving payments from Primary Dealers for securities sold.
- By increasing bank reserves.
What happens when a Primary Dealer delivers securities to a bank or dealer as part of monetary policy?
What happens when a Primary Dealer delivers securities to a bank or dealer as part of monetary policy?
Which action would likely lead to an expansion of the nation's money supply?
Which action would likely lead to an expansion of the nation's money supply?
What role do Primary Dealers play in open market operations conducted by the Federal Reserve?
What role do Primary Dealers play in open market operations conducted by the Federal Reserve?
What are excess reserves at a bank?
What are excess reserves at a bank?
How is the maximum change in the money supply calculated?
How is the maximum change in the money supply calculated?
What does intrastate branching refer to in the U.S. banking system?
What does intrastate branching refer to in the U.S. banking system?
Which system allows establishing branch banks across state lines?
Which system allows establishing branch banks across state lines?
How do excess reserves impact the money supply?
How do excess reserves impact the money supply?
What happens to reserves when they are used for lending?
What happens to reserves when they are used for lending?
What is a primary dealer?
What is a primary dealer?
What is the reserve requirement?
What is the reserve requirement?
How does the Federal Reserve increase the money supply?
How does the Federal Reserve increase the money supply?
What are open market operations?
What are open market operations?
How can the Federal Reserve decrease the money supply?
How can the Federal Reserve decrease the money supply?
What is the main tool used by the Federal Reserve to control the money supply?
What is the main tool used by the Federal Reserve to control the money supply?
