Chapter 14 Flashcards Preview

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Flashcards in Chapter 14 Deck (24):
1

The members of the Board of Governors are appointed by

The President

2

A women in Duluth, Minnesota, bought tickets to a Minnesota Vikings game. Her check was deposited in a bank in Minneapolis. From there it went directly to

The Federal reserve District Bank in Minneapolis.

3

Which statement is true? A.The chairman of FRB is appointed for 14years
B.The chairman may be fired by Pres.
C.Most presidents get to appoint all members of the FRB.
D. None of statements are true.

D.

4

The purpose of establishing the Federal Reserve System was

D. All are correct

5

When there is a great deal of inflation the Fed will

Sell securities on the open market.

6

Required reserves are

A. Equal to total reserves minus excess reserves.

7

The most powerful individual in the federal reserve system is the

Chairman of the FRB

8

He federal Open Market Committee has _____ members.

12

9

Which statement is true about the central bank?

The USA has had a central bank since 1913.

10

The rate of growth of our money supply is controlled by

The Federal reserve

11

Which statement is true about reserves?

Actual reserves -required reserves =excess reserves

12

Our currency is issues by ?

The Federal reserve

13

Bank panic were the result of

Depositors attempting to withdrawal more deposits than the bank held in reserves.

14

The US did not have a central bank until

1914

15

There are ----- members of the Board of Governors of the FR; each serving one ------ year term.q m

7;14

16

All of the nations institutions came under he jurisdiction of the FR in

1980

17

The Fed OPen Market Committee is made up of all of the following except

President

18

The board of governors of the Fed Reserve does each of the following except

Serve on the Board at the pleasure of the President

19

The main job of the Fed is to

Control the rate of growth of the money supply

20

When the Fed wants to increase the money supply it

Buys US government securities

21

Which is not a job of the Federal reserve

Insuring bank deposits

22

In order to buy securities the Fed offers

A high price and drives down interest rates

23

The board of governors of the Federal Reserve is independent of

Both President and congress

24

Which statement is true about the Fed's Governing Board?

None of the statements are true.