quiz8 Flashcards Preview

ECON 103 > quiz8 > Flashcards

Flashcards in quiz8 Deck (10):
1

The Federal Reserve is the _____ bank of the US.

central

2

The Fed is responsible for setting the rules and regulations under which banks operate, but not under which stock brokers operate.

True

3

When the Fed makes a loan to a bank, the interest rate it charges is called the _______ rate.

discount

4

When a bank borrows overnight from another bank, the interest rate they are charged is called the ______ rate.

Federal Funds

5

The Federal Reserve was created by Alexander Hamilton in the early days of the US,

False

6

The Fed is divided into ____ districts.

12

7

The are supposed to be _____ members of the Board of Governors of the Fed.

7

8

The Fed increases the money supply when it:

buys bonds

9

The process in number eight is called ______.

open market operations

10

The Fed is intended to be independent of the president and Congress.

True