Chapter 16 Money and the Banking System

| November 9, 2018

11)
The president of the ________ Federal Reserve Bank is always a member of the
FOMC.
A)
Minneapolis
B)
Boston
C)
Washington, D.C.
D)
New York

12)
There are ________ members of the FOMC.
A)
5
B)
7
C)
12
D)
19

13)
The purpose of having the members of the Board of Governors of the Federal
Reserve serve fourteen-year terms is to
A)
ensure that the governors become well-experienced at policymaking.
B)
insulate the governors’ policy decisions from the influence of presidential
elections and politics.
C)
promote unity of opinion from shared time together.
D)
establish long-standing ties with high-level officials of other nations’
central banks.

14)
The Federal Reserve is ________ the U.S. Treasury.
A)
independent of
B)
a part of
C)
a creation of
D)
under the control of

15)
Studies by economists have tended to show that countries with more independent
central banks have
A)
more inflation.
B)
less inflation.
C)
higher unemployment.
D)
lower unemployment.

16)
The Federal Reserve System is the central bank of the United States.

17)
Monetary policy refers to the actions taken by the Treasury Department to set
the level of the money supply.

18)
In practice, the Board of Governors and the chairperson of the Federal Reserve
have the real control over monetary policy.

19)
Every country in the world has an independent central bank.

20)
Headquartered in Washington, D.C., the Board of Governors of the Federal Reserve
determines monetary policies and strategies based on the state of the economy.

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