Slivinskie CH 13

The Structure of the Fed includes (pick the wrong one)

• Board of Governors

• Federal Open Market Committee

• Open Market Operations

• Monetary Policy

• Financial Policy

Board of Governors is

• •The governing body of the Federal Reserve System

• •The Fed’s 12-member policy-making group. The committee has the authority to conduct open market operations

• •The buying and selling of government securities by the Fed

• •Changes in the money supply or in the rate of change of the money supply, intended to achieve stated macroeconomic goals

Federal Open Market Committee is

• •The governing body of the Federal Reserve System

• •The Fed’s 12-member policy-making group. The committee has the authority to conduct open market operations

• •The buying and selling of government securities by the Fed

• •Changes in the money supply or in the rate of change of the money supply, intended to achieve stated macroeconomic goals

Open Market Operations are

• •The governing body of the Federal Reserve System

• •The Fed’s 12-member policy-making group. The committee has the authority to conduct open market operations

• •The buying and selling of government securities by the Fed

• •Changes in the money supply or in the rate of change of the money supply, intended to achieve stated macroeconomic goals

Monetary Policy is

• •The governing body of the Federal Reserve System

• •The Fed’s 12-member policy-making group. The committee has the authority to conduct open market operations

• •The buying and selling of government securities by the Fed

• •Changes in the money supply or in the rate of change of the money supply, intended to achieve stated macroeconomic goals

The Fed has 8 major responsibilities (multiple)

• Controlling the money supply & Supplying the economy with paper money

• Controlling the money supply & buying foreign currency

• Providing check-clearing services & Holding depository institutions' reserves

• Supervising member banks & Serving as the government's banker

• Serving as the lender of last resort & Handling the sale of US Treasure securities

US Treasure Securities are

• bonds and bondlike securities issued by the US Treasury when it borrows

• stock and stocklike securities issued by the US Treasury when it borrows

• money issued by the US Treasury when it borrows

The US Treasury does the same things the Fed does

• True

• False

_____ is the buying of government securities by the Fed

• Open Market Purchase

• Closed Market Purchase

• Market Purchase

Cash Leakage occurs when funds are held as currency instead of deposited into a checking account

• True

• False