1. The most important money market instrument utilized in the Fed's open market operation is

Treasury bills

Agency securities

Federal Funds

Commercial paper

2. Direct finance is best exemplified by

borrowing from a friend or relative

depositing in a credit union

the purchase of mutual fund shares

employee contributions to a pension fund

3.

Financial market participants who provide funds are called

surplus units

primary units

deficit units

secondary units

4. Which of the following is NOT a major component of the Federal Reserve System?

member banks

Federal Open Market Committee

Securities and Exchange Commission

Board of Governors

5.

Which of the following is an action that the Fed uses to increase or decrease the money supply?

adjusting the tax rate imposed on income earned on Treasury securities

adjusting the coupon rate on Treasury bonds

selling Treasury securities in the primary market

buying or selling Treasury securities in the secondary market

6.

Municipal general obligation bonds are ____. Municipal revenue bonds are ____.

1 point

supported by the municipal government's ability to tax; supported by the municipal government's ability to tax

supported by the municipal government's ability to tax; supported by revenue generated from the project

always subject to federal taxes; always exempt from state and local taxes

typically zero-coupon bonds; typically zero-coupon bonds

7.

Inflation-indexed Treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in prices over time.

1 point

True

False

Submit

8.

Each Federal Reserve district bank is responsible for reporting its regional conditions, and all of these reports are consolidated to compose the Beige Book.

1 point

True

False

Please answer the above mcq as soon as you can.. No explaination is required. Just pick the right answer.