FEE Monetary Policy

What is the primary tool used by the Federal Reserve to guide the federal funds rate?

• open market operations

• discount window rate

• Interest on Reserve Balances (IORB)

• Overnight Reverse Repurchase Facility (ON RRP) rate

When did Congress establish the Federal Reserve system?

• 1776

• 1852

• 1913

• 1977

What is the policy making body of the Federal Reserve?

• Depository Institutions

• Federal Open Market Committee (FOMC)

• Congress

• Federal Reserve Board of Governors

Which of the following is NOT a policy goal of the Federal Reserve?

• full employment

• price stability

• low taxes

Which of the following is largest?

• number of Federal Reserve Banks in the U.S.

• number of voting & non-voting members on the Federal Open Market Committee

• number of Board of Governors for the Federal Reserve

• number of people who get to appoint Federal Reserve Board of Governors

Who must approve Federal Reserve policy making and operational decisions?

• President

• Voters

• Congress

• No one

Which of the following is NOT a function of the Federal Reserve Bank?

• formulate monetary policy

• supervise and regulate member banks

• operate a nationwide payments system

• raise taxes on the wealthy to decrease the federal deficit

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight.

• discount rate

• federal funds rate

• Interest on Reserve Balances (IORB) rate

• Overnight Reverse Repurchase Facility (ON RRP) rate

What did the Federal Reserve set to 0% in March 2020?

• reserve requirements

• car loans

• home loans

• boat loans

Under limited reserves, what did monetary policy focus on influencing to adjust the federal funds rate?

• supply of reserves

• reserve requirements

• demand for reserves