322-13

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Author:
SAngell3
ID:
222701
Filename:
322-13
Updated:
2013-06-06 13:48:09
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322 13
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322-13
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  1. Monitoring FOMC statements made after a meeting for hints as to what level the Federal Reserve is anticipating moving the Fed funds rate is referred to as bias.  

    A) True  
    B) False
    A) True  
  2. Increased required reserves mandated by the Federal Reserve will tend to decrease interest rates in the money market.  

    A) True  
    B) False
    B) False
  3. If the Federal Reserve Board elects to raise reserve requirements, depository institutions will be willing to make more loans at lower interest rates.  

    A) True  
    B) False
    B) False
  4. The Federal Reserve is very cautious about changing the direction of interest rates, or the level of interest rates, even when it appears it will be beneficial.  

    A) True  
    B) False
    A) True  
  5. The Term Auction Facility conducts auctions weekly and these auctions are open to all financial institutions that would be eligible for primary credit from the Federal Reserve.  

    A) True  
    B) False
    B) False
  6. In the early 1980s the unemployment rate in the United States reached its highest levels since the Great Depression, above:  

    A) 8%.  
    B) 12%.  
    C) 15%.  
    D) 10%.  
    E) none of the above
    D) 10%.  
    (this multiple choice question has been scrambled)
  7. Suppose the banking system's nonborrowed reserves total $130 billion with total legal reserves standing at $175 billion. What must borrowed reserves be?  

    A) $305 billion  
    B) $45 billion
    C) $130 billion  
    D) $75 billion  
    E) $175 billion  
    B) $45 billion
    (this multiple choice question has been scrambled)
  8. Which of the following was a liquidity facility provided by the Federal Reserve during the Credit Crisis of 2007-2009?  

    A) Term Securities Lending Facility (TSLF)  
    B) Primary Dealer Credit Facility (PDCF)  
    C) Open Auction Facility (OAF)  
    D) All of the above  
    E) A and B only  
    F) A and C only  
    G) B and C only
    E) A and B only  
  9. Borrowing at the Federal Reserve discount window is:  

    A) common for most banks.  
    B) a requirement of membership in the Federal Reserve System.  
    C) paying a higher interest rate.  
    D) an alternative to Treasury borrowing.  
    E) none of the above
    E) none of the above
  10. Frictional unemployment, which arises from temporary unemployment of job seekers who are either new to the workforce or who are in transition from one job to another, is also referred to as:  

    A) unemployment exceeding 10%.  
    B) full employment level of unemployment. 
    C) fair rate of unemployment.  
    D) Both A and B  
    E) none of the above
    B) full employment level of unemployment.
    (this multiple choice question has been scrambled)

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