There are Federal Reserve regional banks. Which of the following contributes to making the Federal Reserve an independent policymaking body? O There are 12 Federal Reserve banks. O Its role is written into the U.S. Constitution. O Members of the Board of Governors are appointed for 14-year terms. The Federal Reserve's primary tool for changing the money supply is In order to increase the number of dollars in the U.S. economy (the money supply), the Federal Reserve will government bonds.

There are Federal Reserve regional banks. Which of the following contributes to making the Federal Reserve an independent policymaking body? O There are 12 Federal Reserve banks. O Its role is written into the U.S. Constitution. O Members of the Board of Governors are appointed for 14-year terms. The Federal Reserve's primary tool for changing the money supply is In order to increase the number of dollars in the U.S. economy (the money supply), the Federal Reserve will government bonds.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter12: Money And The Banking System

Section: Chapter Questions

Problem 3DQ

See similar textbooks

The Federal Reserve's organization

There are 5 , 7, 12 Federal Reserve regional banks.

Which of the following contributes to making the Federal Reserve an independent policymaking body?

A) There are 12 Federal Reserve banks.

B) Its role is written into the U.S. Constitution.

C) Members of the Board of Governors are appointed for 14-year terms.

The Federal Reserve's primary tool for changing the money supply is choice: the reserve requirement, open-market operation, the discount rate. In order to increase the number of dollars in the U.S. economy (the money supply), the Federal Reserve will choice: buy, sell government bonds.

There are
Federal Reserve regional banks.
Which of the following contributes to making the Federal Reserve an independent policymaking body?
O There are 12 Federal Reserve banks.
O Its role is written into the U.S. Constitution.
O Members of the Board of Governors are appointed for 14-year terms.
The Federal Reserve's primary tool for changing the money supply is
In order to increase the number of dollars in
the U.S. economy (the money supply), the Federal Reserve will
government bonds.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Question 3 In the market for reserves, suppose that the federal funds rate and discount rate are both at 7%. If the Federal Reserve Bank sells securities in the open market, then the equilibrium rate for reserves will and the amount of borrowed reserves will O not change; decrease O not change; increase O rise; increase O rise; decrease Question 4 When the Federal Reserve Bank lowers the reserve requirements for commercial banks in the economy, this causes the curve for reserves to decrease and so the curve shifts to the ----- O demand; right O demand: left O supply; right O supply; left
Suppose that commercial banks do NOT hold excess reserves. When the Federal Reserve raises the reserve requirement, the money supply will because commercial banks can make loans. O shrink; more O shrink; fewer O grow; more O grow; fewer
U Search thi Aplia Homework: Money and the Financial System Attempts Keep the Highest/2 Tools 4. The structure of the Federal Reserve Which of the following are objectives that the Federal Reserve tries to achieve when setting monetary policy? Check all that apply. ips O Price stability ps OEconomic growth O Zero unemployment O Interest rate stability O Zero inflation Which of the following contributes to making the Federal Reserve an "independent" policymaking body? O There are 12 different Federal Reserve banks. O Its role is written into the U.S. Constitution. O Members of the Board of Governors are appointed for 14-year, nonrenewable terms. Grade It Now Save & Continue Continue without saving to search DELL
Which of the following represents an action by the central bank designed to increase the money supply? Select one: O a. an increase in the discount rate O b. an increase in the required reserve ratio O .buying government securities O d. a decrease in tax rates
5. The Federal Reserve's organization While all members of the Federal Reserve Board of Governors vote at Federal Open Market Committee (FOMC) meetings, only v of the regional bank presidents are members of the FOMC. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? O Buying and selling stocks O Making decisions regarding monetary policy Issuing mortgages to homeowners The Federal Reserve's primary tool for changing the money supply is open market operations ▼ In order to decrease the number of dollars in the U.S. economy (the money supply), the Federal Reserve will sell government bonds.
Which of the following is a tool for the Fed if it wants to increase the money supply? O raise the discount rate raise the reserve requirement O buy U.S. Treasury bills O lower taxes
Which of the following statements about the market for reserves is true? The Federal Reserve controls the discount rate, but not the amount of nonborrowed reserves. O The supply curve for reserves is completely controlled by the Federal Reserve. The demand curve for reserves is completely controlled by the Federal Reserve. O The Federal Reserve controls the discount rate, but not the amount of nonborrowed reserves.
5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? Making decisions regarding monetary policy Buying and selling stocks Issuing mortgages to homeowners The Federal Reserve's primary tool for changing the money supply is . In order to increase the number of dollars in the U.S. economy (the money supply), the Federal Reserve will government bonds. O O
Suppose the Federal Reserve (Fed) decides the current money supply of $2.1 trillion is too low, and that an increase of $400 billion is necessary. What tool can the Fed use to accomplish this increase? Assume the current reserve ratio is 0.1 OIncrease the reserve ratio. O Buy government securities. Increase the interest paid on bank reserves. Sell government securities. Calculate the change in reserves necessary to achieve the $400 billion increase billion
11. People view cell phone and its charger as complements to one another. If the price of cell phone increases, economists would expect: O The demand for charger will not change. O The demand for charger to increase. O The quantity of cell phone demanded to increase O The demand for charger to decrease. 12. Which one is not the role of the Fed? O The Fed also acts as a bank to the American citizens with net wealth is larger than 10 million dollar. O The Fed also acts as a bank to other banks by clearing checks, making electronic payments, and providing the currency that American's need and use every day. O The Fed also helps to supervise and regulate the nation's banks and works to promote a stable financial system for consumers, communities, and businesses The Fed implements monetary policies that promote maximum employment and m stable prices.
Question 5 Say that currently, in the market for reserves, the discount rate is above the federal funds rate. If the Federal Reserve Bank begins to sell securities, then the amount of Non-Borrowed Reserves in the economy will and so, then the federal funds rate will, increase; fall increase; rise O decrease; fall O decrease; rise
The twelve Federal Reserve Banks: are also known as national banks. O hold the reserve deposits of commercial banks. O are owned and operated by the U.S. Treasury. O were created in 1776.