21.The Fed’s non-monetary or regulatory powers do NOT include
a. Margin requirements
b. Interest rate disclosures on deposits
c. Investigation and prosecution of counterfeiting
d. Bank holding companies
22.Which of the following was a responsibility of the early Federal Reserve System?
a.to control the money supply
b.to safeguard the national payment system
c.to establish a more rigorous bank supervisory system
d.all of the above
23.The Federal Reserve System established
a.a system for federal chartering of banks.
b.a system for controlling bank note issuance.
c.a source of liquidity for the banking system.
d.the beginning of demand deposit accounts.
24.Increases in the Fed’s assets
a. decrease the monetary base
b. increase the monetary base
c. have no effect on the monetary base.
d. none of the above
25.Which of the following can be associated with the modern objectives of the Fed?
a.coordinate an efficient payments mechanism.
b.provide an elastic money supply.
c.regulate the financial system.
d.all of the above.
26.Reforms and regulatory changes in U.S. financial institutions are best associated with:
a.international events affecting U.S. financial institutions.
b.periods of severe economic and financial problems in the U.S. economy.
c.voter changing the majority party in Congress.
d.recommendations of presidential commissions.
27.Who among the following does NOT have a permanent vote on the FOMC?
a. President, Federal Reserve Bank of New York
b. Chairman, Board of Governors
c. President, Federal Reserve Bank of Los Angeles
d. Members of the Board of Governors
28.There are ______ members of the Federal Reserve Board of Governors, _______ members of the Federal Open Market Committee, and ________ Federal Reserve Banks.
a. 12; 7; 12
b. 7; 14; 12
c. 14; 12; 12
d. 7; 12; 12
29.All of the following are locations of Federal Reserve Banks except
a. San Francisco
c. Washington, DC
d. Kansas City
30.An increase in Federal Reserve float
a.decreases bank reserve deposits in the Fed.
b.increases bank reserve deposits in the Fed.
c.has no impact upon bank reserves deposits in the Fed.
d.reduces the net loan granted by the Fed to member banks.