Chapter 13 Practice Quiz1. Members of Congress indirectly influence monetary policy through their ability toa. withhold appropriations from the Board of Governors.b. withhold appropriations from the Federal Open Market Committee.c. propose legislation that would change the structure of the Federal Reserve.d. appoint the Federal Reserve bank presidents.2. Which of the following is NOT an entity of the Federal Reserve System?a. Federal Reserve Banks b. The Comptroller of the Currencyc. The Board of Governors d. The Federal Open Market Committee3. The president from which Federal Reserve Bank always has a vote in the Federal Open Market Committee?a. Philadelphia b. Bostonc. San Francisco d. New York4. Which of the following functions are not performed by any of the twelve regional Federal Reserve Banks?a. check clearingb. conducting economic researchc. setting interest rates payable on time depositsd. issuing new currency5. All ________ are required to be members of the Fed.a. state chartered banks b. nationally chartered banksc. banks with assets less than $100 million d. banks with assets less than $500 million6. Banks subject to reserve requirements set by the Federal Reserve System includea. only nationally chartered banks.b. only banks with assets less than $100 million.c. only banks with assets less than $500 million.d. all banks whether or not they are members of the Federal Reserve System.7. Members of the Board of Governors area. chosen by the Federal Reserve Bank presidents.b. appointed by the newly elected president of the United States, as are cabinet positions.c. appointed by the president of the United States and confirmed by the Senate as members resign or their terms expire.d. never allowed to serve more than 7-year terms.8. While the discount rate is “established” by the regional Federal Reserve Banks, in truth, the rate is determined bya. Congress b. The President of the United Statesc. The Senate d. The Board of Governors9. Each Fed bank president attends FOMC meetings; although only ___________ Fed bank presidents vote on policy, all _______________ provide input.a. three; ten b. five; tenc. three; twelve d. five; twelve10. Critics of the current system of Fed independence contend thata. the current system is undemocratic.b. voters have too much say about monetary policy.c. the president has too much control over monetary policy on a day-to-day-basis.d. the Board of Governors is held responsible for policy missteps.Answers to Practice Quiz for Chapter 131. C2. B3. D4. C5. B6. D7. C8. D9. D10.
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