Question 36 Which of the following functions are performed by today's Federal Reserve? Not yet answered Points out of 1.0 P Flag question Select one: O a. Serve as the bank of the U.S. government and the nation's banks O b. Maintain the U.S. payments system O c. Manage the nation's money supply O d. All of the above Question 37 Along with its headquarters in Washington, D.C, the Federal Reserve System has Not yet answered Points out of 1.0 Select one: O A. twelve federal reserve district banks. O B. numerous branch banks of the district banks Flag question O C. at least one dedicated check processing center. O D. all of the above Question 38 Which of the following statements is true concerning the First Bank of the United States? Not yet answered Points out of 10 Flag question Select one: a. Located in Washington, DC O b. Charter was renewed by Congress in 1811 O c. President Madison pushed for renewal of the bank's charter O d. None of the above Question 38 Which of the following statements is true concerning the First Bank of the United States? Not yet answered Points out of 10 Flag question Select one: O a. Located in Washington, DC O b. Charter was renewed by Congress in 1811 O c. President Madison pushed for renewal of the bank's charter O d. None of the above Question 39 Which of the following allowed the Federal Reserve to operate independently of the U.S. Treasury? Not yet answered Points out of 10 Select one: O a Federal Reserve Act of 1913 Flag question O b. Federal Reserve Act of 1935 O c. 1951 Accord O d. Federal Reserve Reform Act of 1977 Question 40 Which of the following were established by the Federal Reserve Act of 1913? Not yet answered Points out of 1.0 Select one O a. The Federal Open Market Committee to determine U.S. monetary policy Flag question O b. A federal system of 12 district banks to provide funds as needed to member banks O c. Both of the above are true O d. None of the above are true Question 31 If you pay $1200 today for a new $1000 face value two year bond with a 8% coupon rate, your rate of return, or yield to maturity is Not yet answered Select one: Points out of 1.0 O a. 8% Flag question O b. more than 8% O c. less than 8% O d. need more information to calculate Question 32 History has shown that a recession is imminent if Not yet answered Points out of 1.0 P Flag question Select one: O a. the yield curve is downward sloping O b. long term rates are higher than short term rates O c. investors prefer short term bonds over long term bonds O d. the spread between the 10-year treasury rate and the 3-month treasury bill rate is positive Question 33 The risk of excessive creation is usually associated with Not yet answered Points out of 1.0 P Flag question Select one: O a. Commodity money O b. Specie currency O c. Fiduciary money O d. Fiat money Question 33 The risk of excessive creation is usually associated with Not yet answered Points out of 10 P Flag question Select one: a. Commodity money O b. Specie currency O c. Fiduciary money O d. Fiat money Question 34 As interest rates increase Not yet answered Points out of 1.0 Select one: O a savers will provide more funds P Flag question O b. borrowers will demand more funds O c the demand curve will be upward sloping O d. the supply curve will be downward sloping Question 35 Which of the following is true concerning the Federal Reserve's independence? Not yet answered Points out of 1.0 Flag question Select one: O a. The Fed is completely independent of the U.S. government O b. The Fed is regulated by the Federal Deposit Insurance Corporation O c. The Fed is dependent upon Congressional funding d. None of the above Question 26 Prior to the 1980s, the Federal Reserve could use targets for M1 and M2 to conduct monetary policy because Not yet answered Select one: Points out of 1.0 P Flag question inflation was well under control. ob. there was a fairly good link between M1, M2, and inflation. O c. business cycles were fairly predictable. O d. M1 and M2 were easy to measure and report Question 27 Based on the Pure Expectations Theory of interest rates, if the one-year rate is 4%, and the one-year rate, one year from now, is expected to be 10%, the current two-year rate should be Not yet answered Points out of 1.0 Flag question Select one: O a. 7.0 % Ob. 3.0% O c. 6.0% Od. 14.0% Question 28 A limit on the amount of interest that could be paid was the result of Not yet answered Points out of 1.0 Flag question Select one: O a. Disintermediation O b. Regulation Q O c.The Reserve Primary Fund O d. M1 Question 29 Coins that have both intrinsic value and and instrumental value are called Not yet answered Points out of 1.0 Select one: O a. Specie currency P Flag question O b. Bullion O c. Fiduciary money O d. Fiat money Question 30 If the general level of interest rates goes up Not yet answered Points out of 10 Flag question Select one: O a. bonholders are pleased because the value of their bonds will increase O b. bonholders are unhappy because the value of their bonds will decrease. O c the general level of bond prices will increase O d. bond interest payments will decline due to the inverse relationship