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11.Currency is an asset of the Federal Reserve Banks.

 

12.A decrease in reserve requirements increases the total level of member bank reserves.

 

13.An increase in the money supply does not affect the supply of loanable funds.

 

14.Open market purchases by the Fed reduce total reserves in the banking system.

 

15.Monetary policy is a highly partisan issue.

 

16.The Fed can change the level of member bank reserves as well as reserve requirements.

 

17.The first impact of monetary policy upon depository institutions is via excess reserves.

 

18.Deposits should expand when the Fed sells securities.

 

19.The Discount Rate is a direct control on the money supply.

 

20.The Fed is this nation's first permanent central bank.

 

 

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