20.1
Multiple Choice Questions
1) Why did the Fed expand discount lending in the aftermath of the terrorist attacks in the fall of 2001?
2) Which of the following is the dominant means by which the Fed attempts to change the monetary base?
3) Banks and Wall Street firms engage in Fed watching in order to
4) Expansionary monetary policy consists of all of the following EXCEPT
5) An open market purchase
6) The Fed can use open market operations to regulate the money supply provided that
7) The original Federal Reserve Act
8) When did the Fed first begin to use open market operations as a policy tool?
9) How were open market operations conducted prior to 1935?
10) Congress established the FOMC because
11) The Fed generally conducts open market operations in
12) An open market purchase
13) An open market sale
14) As a result of an open market purchase, bank reserves
15) Which of the following statements is correct?
16) The FOMC states its overall objectives for interest rates in
17) The general directive from the FOMC is carried out by
18) The Open Market Trading Desk is
19) How does the Open Market Trading Desk conduct its operations?
20) Primary bond dealers are those
21) If the account manager finds that the current level of bank reserves is greater than the desired level indicated in the most recent directive from the FOMC, he will
22) If the account manager does not use a Federal Reserve repurchase agreement or a matched sale-purchase transaction in carrying out open market operations, he will use
23) A Federal Reserve repurchase agreement involves
24) A matched sale-purchase transaction is also known as a
25) In a matched sale-purchase transactio...
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