1. In a run-off transaction, The Fed deals directly with the U.S. Treasury in acquiring and redeeming securities.

A question requiring a 'True/False' answer.(Required)

True/ False

2. If the Fed acquires new securities from U.S. Treasury to replace maturing ones,

A multiple-choice question with several possible answers.(Required)

1. interest rate will be increased
2. price of the treasure securities will be increased
3. interest rate will be decreased
4. price of the treasure securities will be decreased

3. If the Fed decided to return the maturing securities to the U.S. Treasury,

A multiple-choice question with several possible answers.(Required)

1. interest rate will be decreased
2. price of the treasure securities will be increased
3. interest rate will be increased
4. price of the treasure securities will be decreased

4. In an agency transaction, if the Fed acts as an intermediary, total bank reserves will be changed.

A question requiring a 'True/False' answer.(Required)

True/ False

5. In an agency transaction, if the Fed sells (buys) from its inventory, total bank reserves will be unchanged.

A question requiring a 'True/False' answer.(Required)

True/ False

6. The basic purpose of dynamic open market operations is to preserve the status quo and to keep the present pattern of interest rates and credit availability about where it is

A question requiring a 'True/False' answer.(Required)

True/ False

7.If the Fed believe the economic needs to go faster to create more job, it may conduct dynamic open market operations.

A question requiring a 'True/False' answer.(Required)

True/ False

8. Fed recently started setting the discount rate on primary and secondary credit below the target rate on federal funds.

A question requiring a 'True/False' answer.(Required)

True/ False

9. The primary credit rate (discounted rate) also serves as a lower bound for the prevailing market rate on federal funds.

A question requiring a 'True/False' answer.(Required)

True/ False

10. Fed adjusts target rate incrementally.

A question requiring a 'True/False' answer.(Required)

True/ False

11.Feds activities may differentially impact long-term and short-term interest rates.

A question requiring a 'True/False' answer.(Required)

True/ False

12.Full employment means zero unemployment rate.

A question requiring a 'True/False' answer.(Required)

True/ False

13. IROE (interest rate on excess reserve) can serve as the lower bound of the federal fund rate.

A question requiring a 'True/False' answer.(Required)

True/ False