Monetary Policy Practice

Front

Which of the following best describes the relationship between the Federal Reserve and the U.S. government? Options: The Federal Reserve is a part of the U.S. government and its decisions must be approved by Congress. The Federal Reserve acts as the government's bank, but operates independently of direct government control. The Federal Reserve is under the direct control of the President of the United States. The Federal Reserve and the U.S. government are completely separate entities with no direct influence over each other.

Back

The Federal Reserve acts as the government's bank, but operates independently of direct government control.

Front

Members of the Federal Reserve Board of Governors:

Back

serve 14 year terms

Front

How many regional banks make up the Federal Reserve System?

Back

12

Front

Which subcommittee of the Federal Reserve is responsible for implementing monetary policy? Options: Federal Reserve Board of Governors, Federal Open Market Committee, Federal Reserve Oversight Committee, Federal Reserve Interest Rate Committee

Back

Federal Open Market Committee

Front

Fedwire is most associated with which of the Fed's primary functions?

Back

the payments system

Front

The Dodd-Frank Act of 2010 is most associated with which of the Fed's primary functions?

Back

supervision and regulation of banks

Front

Open market operations refers to:

Back

the Fed buying and selling bonds to commercial banks

Front

If the Fed decreases the Reserve Requirement, the money supply will:

Back

increase

Front

If the Fed increases the Discount Rate, the lending and spending will:

Back

decrease

Front

If the Fed sells bonds to commercial banks, unemployment will:

Back

increase