Which of the following are types of Federal Reserve discount window loans:

2.         The Federal Reserve Banks do all but which one of the following? A. Conduct...

2.         The Federal Reserve Banks do all but which one of the following? A. Conduct monetary policy B. Supervise and regulate bank activities C. Serve as the commercial bank for the U.S. Treasury D. Operate check clearing and wire transfer facilities E. Conduct fiscal policy 3.         Currently the Fed primarily sets monetary policy by targeting A. the fed funds rate. B. the prime rate. C. the level of non-borrowed reserves. D. the level of borrowed reserves. E. the...

1.The Federal Reserve System is responsible to A. regulate securities exchanges. B. conduct monetary policy. C....

1.The Federal Reserve System is responsible to A. regulate securities exchanges. B. conduct monetary policy. C. provide payment and other services to certain types of financial institutions. D. setting bank prime rates. E. both B and C. 2.         Which of the following does the Federal Reserve Banks do in regard to bank supervision? I. Examinations of state-chartered member banks II. Approval of member bank and bank holding company acquisitions III. Provide deposit insurance A. I only B. I and...

Suppose that the Federal Reserve sets its target for the federal funds rate at a range...

Suppose that the Federal Reserve sets its target for the federal funds rate at a range of 0.25 to 0.50 percent.  This means that the discount rate on primary loans will be set at _____ percent and the discount rate on secondary loans will be set at _____ percent. Select one: a. 1.25; 1.50 b. 1.00; 0.50 c. 1.00; 1.50 d. 0.50; 1.00 e. 1.50; 1.00

Which of the following are tools used by the Fed to manage inflationary and employment concerns?...

Which of the following are tools used by the Fed to manage inflationary and employment concerns? I. Direct market intervention by buying and selling Treasuries. II. Changing member bank reserve requirements. III. Printing and distributing fiat currency. IV. Raising or lowering the Federal Discount Rate. Only I, II and IV are correct Only I and II are correct. All are correct. Only III is false. All are false.

When a bank repays a loan at the discount window to the Federal Reserve, it will...

When a bank repays a loan at the discount window to the Federal Reserve, it will __________ the monetary base by __________ bank reserves. Select one: a. decrease; decreasing b. increase; decreasing c. decrease; increasing d. increase; increasing The securities that the Federal Reserve holds on its balance sheet include Select one: a. ?US Treasury securities, federal agency debt, and privately issued mortgage-backed securities. b. ?privately issued stocks, US Treasury securities, and federal agency debt. c. municipal bonds, privately issued...

Which of the following is not a fundamental function of the Federal Reserve? 1. Conduct the...

Which of the following is not a fundamental function of the Federal Reserve? 1. Conduct the nation's monetary policy. 2. Provide an effective payments system. 3. Regulate banking operations. 4. Ensure bank profitability. 5. All of the above are fundamental functions of the Federal Reserve. QUESTION 2 Which of the following is not one of the Fed's monetary policy tools? 1. Open market operations 2. Changes in the fed funds rate 3. Changes in the discount rate 4. Changes in...

An F/I has $5 million in cash reserves with the Fed in excess of its reserve...

An F/I has $5 million in cash reserves with the Fed in excess of its reserve requirements, $5 million in T-bills, and a credit line of $10 million to borrow in the Repo market. It currently has lent $2 million in the Fed Funds market and borrowed $1 million from the Federal discount window to meet its seasonal needs. A. What are the bank's total available sources of liquidity (in $-millions)? B. What are the bank's current total uses of...

Which of the following was not an original responsibility of the Federal Reserve? a. Issue currency...

Which of the following was not an original responsibility of the Federal Reserve? a. Issue currency (Federal reserve notes) b. Conduct monetary policy c. Smooth seasonal variations in credit availability and interest rates d. Limit the extent of banking panics (financial crises)

The following loan is not available through the discount window: A adjustment credit B primary credit.                ...

The following loan is not available through the discount window: A adjustment credit B primary credit.                 C secondary credit D seasonal credit D None of the options is correct. You are a manager at AAA Bank. You are evaluating the opportunity to offer a wider variety of products (addition of new types of products) and to simultaneously attain cost-reductions, by using the same human resources and physical assets. This new project is an example of: A Product-line diversification effect B...

1. Assume that the reserve requirement for the commercial banks is 25%. If the Federal Reserve...

1. Assume that the reserve requirement for the commercial banks is 25%. If the Federal Reserve Banks buy $3 billion in government securities, the lending ability of the commercial banking system will increase by _____. a. $4.5 billion b. $9 billion c. $12 billion d. $15 billion 2. Which of the following statements is correct? a. The federal funds rate is derived based on the prime rate. b. The federal funds rate is the rate banks charge their most creditworthy...