1. The Federal Reserve System (the "Fed"):

a. has the status of a Congressional committee.

b. is an agency of the executive branch of the Federal government.

c. is the central bank and monetary authority of the U.S.

d. has the same status as the Supreme Court.

2. The "Federal Funds Rate" is the:

a. interest rate the FED charges banks that borrow reserves.

b. rate the FED pays commercial banks for holding their required reserves.

c. interest rate banks charge one another for overnight borrowing.

d. rate the Federal government pays on treasury securities sold in foreign markets.

3. The head and basic policy-making body of the Federal Reserve System is:

a. the FOMC (Federal Open Market Committee).

b. the Federal Advisory Council.

c. the Board of Governors.

d. the Federal District Banks.

4. The buying and selling of government securities by the Federal Reserve is known as:

a. Margin Requirement.

b. Open Market Operations.

c. Jawboning.

d. Discounting.