31.“Cash drains” are an example of a “technical factor”.
32.Reserve requirements are not useful for “fine tuning.”
33.The Fed is powerless against “technical factors”.
34.High stock prices are a goal of monetary policy.
35.The goals of U.S. monetary policy were set by Congress.
36. The primary policy tool used by the Fed to meet its monetary policy goals are to
change reserve requirements, to devaluing the US$, and to change bank regulations.
37.If the Fed was instead targeting interest rates and money demand dropped the Fed would likely increase the money supply.
38. The expected effect of quantitative easing (QE) in 2010 and 2011 is to lower long-term interest rates to boost the economy.
39. The Federal Open Market Committee (FOMC) is the major monetary policy making body of the U.S. Federal Reserve System.