Q1 Which of the following tools of monetary policy used by the Federal Reserve is considered to be potentially the most powerful?

Open Market Operations.

Discount Rate Policy.

Increase the Money Supply.

Reserve Requirements.

Q2 In Public Law 111-203 (Dodd-Frank Act), the organization responsible for determining emerging financial risks to the overall economy is the ________________.

Consumer Financial Protection Bureau (CFPB).

U.S. Securities and Exchange Commission (SEC).

Financial Stability Oversight Council (FSOC).

Federal Reserve Bank (FRB).

Q3Credit Default Swaps (CDS) had a major role in the financial crisis. As discussed in class, the biggest problem with a CDS is that they _____________.

lacked insurance reserves

lacked transparency in financial markets

were regulated by the U.S. Securities and Exchange Commission (SEC)

were regulated by the individual States