Which monetary policy tool does the fed use most infrequently

Question 1

Finance has its origins in:

economics and statistics

accounting and sociology

accounting and economics

psychology and mathematics

Question 2

If the interest rate is greater than 0%, then a dollar today is worth

more than a dollar tomorrow

the same as a dollar tomorrow

less than a dollar tomorrow

there is not sufficient information to tell

Question 3

Maximizing _____________________ is accomplished through effective financial planning and analysis, asset management, and the acquisition of financial capital.

the value of perquisites.

the owners' wealth.

the firm's profits

the firm's earnings

Question 4

$1,000 invested today at 6% interest would be worth ________ one year from now

$1,600

$1,060

$1,160

$1,006

Question 5

An effective financial system needs which of the following:

an efficient monetary system

to be able to trade with other nations

markets in which to buy and sell goods and services

physical locations for markets

Question 6

In the United States, most money is created by:

depository institutions

the United States Treasury

capital markets

None of the above

Question 7

Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system.

opportunity

marginal cost

supply-and-demand

anti-monopoly

Question 8

The seven-member board of the Federal Reserve that sets monetary policy is called

the Federal Reserve Open Market Committee.

the Federal Reserve Board of Governors.

the Federal Reserve Advisory Committee.

the Federal Market Advisory Committee.

Question 9

Which monetary policy tool does the Fed use most infrequently?

changing reserve requirements

changing the discount rate

open market operations

changing the Fed Funds rate

Question 10

The least used monetary policy instrument used by the Fed is

open market operations

changing the discount rate

changing the reserve requirement

issuing treasury bills

Question 11

The most used monetary policy instrument used by the Fed is

open market operations.

changing the discount rate.

changing the reserve requirement.

issuing securities.

Question 12

The capital stock of each Federal Reserve Bank

is owned by the Board of Governors of the Fed.

can be used in an emergency to provide funds for the Fed.

is owned by members of the individual Federal Reserve Banks.

has been reserved for purchase of the U.S. Treasury.

Question 13

Under the authority of the Federal Reserve Act of 1913

all national and state-chartered banks must become members of the Fed.

only national banks were permitted to become members of the Fed.

state-chartered banks were permitted to withdraw from membership with the Fed.

a system of deposit insurance was created.

Question 14

Under the authority of the Federal Reserve Act of 1913

all national and state-chartered banks must become members of the Fed.

only national banks were permitted to become members of the Fed.

state-chartered banks were permitted to withdraw from membership with the Fed.

a system of deposit insurance was created.

Question 15

Which one of the following transactions or operations is entirely at the initiative of the Federal Reserve?

Open market operations

Change in float

Change in bank borrowings

Change in Treasury cash holdings

Question 16

When the United States Treasury makes a payment to an individual, it usually takes the form of a

check drawn on a Federal Reserve Bank.

check drawn directly against the U.S. Treasury.

special Treasury voucher.

check drawn against a bank in which tax balances are held.

Question 17

A country's economic policy actions are directed toward which of the following goals?

No change in the GDP

High employment

Maintaining high inflation

Zero trade deficit or surplus

Question 18

Deposits that add new reserves to the bank where they are deposited are called

primary deposits.

derivative deposits.

secondary deposits.

Special Drawing Rights

Question 19

The U.S. Treasury is primarily responsible for

monetary policy.

debt management.

fiscal policy.

the money supply.

Question 20

The Federal Reserve System cannot directly control

Treasury security purchases by the public.

monetary base.

the size of the money supply.

commercial bank reserve requirements.