1. Monetary policy in the U.S. is primarily made by which of the following?

A. FOMC B. OCC C. FRB bank presidents D. U.S. Congress E. none of the above

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 discount window rate.

4. The discount window rate is the rate that

A. banks charge for loans to corporate customers. B. banks charge to lend foreign exchange to customers. C. banks charge each other on loans of excess reserves. D. banks charge securities dealers to finance their inventory. E. the Federal Reserve charges on loans to commercial banks.

5. If the Fed wishes to stimulate the economy it could

I. buy U.S. government securities. II. raise the discount rate. III. lower reserve requirements.

A. I and III only B. II and III only C. I and II only D. II only E. I, II, and III