Question

13.Most consumer deposits in banks are insured by the FDIC

A.True

B.False

14.If the reserve requirement increased from 10% to 20% that would

A.Create more money

B.Create Less Money

C.Have no impact on Money

15.The Fed takes direction from the President and Congress

A.True

B.False

16.What is the Federal Reserve?

A.It's the Central Bank of the United States

B.It's a private offshore bank for wealthy people

C.The bank for savings and loans

D.The central bank for New York

17.What is the Federal Reserve Board of Governors?

A.The 50 Governors of the United States

B.The savings and loan Presidents

C.Members of the advisory council

D.The basic policy-making body of the Federal Reserve System

18.How many members of the Board of Governors are there?

A.5

B.7

C.12

D.11

19.What Policy does the Fed use to maintain a healthy economy?

A.Fiscal Policy

B.Monetary Policy

C.Discretionary Policy

D.Non discretionary Policy

20.The FOMC carries out monetary policy discussion in an open forum when they meet

A.True

B.False

21.Major monetary policy decisions by the Fed require approval from

A.The President

B.Congress

C.The President and Congress

D.The FOMC and Board of Governors

22.If the Fed wants to increase the money supply,it will

A.Sell T-Bills

B.Buy T-Bills

C.Print Money

D.Increase interest rates

Answer 1

Answer of 13 is True.

the FDIC has provided bank customers with prompt access to their insured deposits whenever an FDIC - insured bank. The term "insured bank" means a bank insured by FDIC, including banks chartered by the federal government as well as most banks chartered by the state.

Answer of 14 is Option B.

Suppose the required reserve ratio was 10% and then it increased to 20%, this would: result in a drop in the money multiplier from 10 to 5. As te money multiplier decrease, create less money.

Answer of 15 is False.

The President makes sure that the federal government's budget is sound and assists in creating policy proposals for creating new jobs or to raise or lower ... Executive Orders: EO's carry the same weight as a law, but do not require congressional approval.

Answer of 16 is Option A.

The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises.

Answer of 17 is Option D.

The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System and basic policy-making body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement monetary policy of the United States.

Answer of 18 is Option B.

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate.