7. 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 8. being targeted. At this time, the U.S. monetary policy is implemented primarily by 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. 9. If the Fed is targeting interest rates, should money demand increase, then its policy response should be to A. increase the discount rate. B. increase reserve requirements. C. buy U.S. Treasury securities from government bond dealers. D. increase government spending. E. none of the above. 10. The Federal Reserve Banks' prevalent balance sheet assets are A. U.S. Treasury Securities B. Currency in circulation C. Reserves of Depository Institutions D. Vault Cash of Depository Institutions E. Gold and Foreign Currency held