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/ Homework Answers / Finance / TRUE/FALSE QUESTIONS 1.Deposits should expand when reserve requirements increase. 2.The

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TRUE/FALSE QUESTIONS

 

1.Deposits should expand when reserve requirements increase.

 

2.The Fed's most influential tool is reserve requirements.

 

3.Federal Reserve regulations affect many nonbank institutions.

 

4.Depository institutions create money when they lend or invest excess reserves.

 

5.The Federal Open Market Committee basically establishes our nation's monetary policy.

 

6.A primary function of the Fed is economic stabilization via control of the money supply.

 

8.The Federal Reserve is independently funded and thus immune to any political pressure.

 

9.In the check-clearing system DACI usually exceeds CIPC, creating Fed float.

 

10.A decrease in Federal Reserve float decreases member bank reserves.

 

 

 

1

 

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