21.The Federal Reserve System replaced the National Banking system.
22. Congress is powerless over the Fed.
(F) 23. Excess reserve balances pay interest; required reserve balances do not.
(T) 24. Open Market Operations are the primary tool of monetary policy today.
(F) 25. A Fed governor has a lifetime appointment.
(T) 26. As the Fed expands the monetary base, bank loans and investments should expand also.
(T) 27. Though decentralized in geography, today’s Fed is highly centralized in power structure.
(T) 28. Reserve requirements are not considered a viable tool of monetary policy.
(F) 29. The “monetary base” comprises the Fed’s most important assets.
(T) 30. The Federal Reserve Bank of New York is the “headquarters” of open market operations.