1. The "discount rate" is the rate. a barits tharge their bert castoniers b. the Fed charges banks for reserves c. charged by a bank on loans d. none of the abose. 2. Which of the following is not a major componitit of the Fedent Resente System? a member banks b. Federal Open Market Committee c. Board of Govemots d Securities and Exchange Commission 3 Which of the foltowing is not an actry ty of Federal Reserve Distnct banks? a. clearing checks b. prosiding foans to member tant c. replacing old currency d. matching lenders \& borrowers for commercial loans 4. Which is currently the major role of the Federal Reserve's Board of Governors? a. reguinting commereint bonks b. regulating forcign trade c. controlling monetary policy d. regulating thrifts. 5. Which of the following is not a tool directly under the controt of the FED? a. open market operations b. setting the discount rate c. setting the federal funds ratt 1. adjusting the reserve requirement ratio 6. Total funds of commercial banks will initially by the dollar amount of securities by the FED a. increase; purthased b. increase; sold c. decreave; purchased d. remain unchanged, purchased 7. A loose money policy tends to conomic gowth and place preinure in the inflation rate a. - itimulate downwat b stimulate apward c. dimpen, upward d dampen; downviad 8. Which of the following best deacribes the relatioeitip betwern the FED and the Administration? 2. The FED nut receive approval by the Adminitration before conducting minotary policy. b. The FED must implenent a monetary policy specifically to support the Administration's policy. c. The Administration must receive approval from the FED before implementing fiscal policy. d. None of these is an accurate descriction. 9. Banks sometimes need finds and sometimes lave caress findr araitable Which of the following it commonly both a source and a une of bank findt: a. MMDAs b. Fedenal Fund c. discourt winson: d. chectring deposits. 10 Which of the following is a muin despulatory provinica of Depository Institutions Deregolation wed Monetary Control Act of 1980m a. Eliminatephase-oit of deposit intereit rate ceilings: b. allowance of insurace policies to be sold by all depository inititutions, c. new lending flecibility for depositary inatitutions in the area of ntocks. d. elimuiation of all interstate tamking by any depository institutions if its lubslities are ratesenutive than is assets
