Question 41 Not yet answered Points out of 10 Which of the following provided a common rationale for founding the Federal Reserve System? 1. The need to establish a "lender of last resort" to prevent banks from becoming insolvent II. The need for an "elastic currency" to allow the money supply to expand and contract III. The need to create more commercial bank notes and credit to meet borrowing demand Flag question Select one: a. I only b. I and II only cland Ill only d. I, II and III Question 42 Not yet answered Points out of 1.0 P Flag question Members of the Federal Reserve Board of Governors are: 1. Appointed for a 14-year term of office, with reappointment not permitted II. Required to be faculty members in economics departments of accredited universities III. Allowed to serve out their predecessor's remaining term of office ahead of their own term Select one: a. I only b. I and II only c. I and III only d. I, II, and III Question 43 Not yet answered Points out of 10 Flag question Which of the following is responsible for managing the FOMC's reverse repurchase agreement program? Select one: a. The Office of the Comptroller of the Currency b. The trading desk of the New York Federal Reserve District Bank C. The U.S. Treasury d. All of the Federal Reserve District Banks Question 44 Not yet answered Points out of 10 Flag question Which of the following is the time between identifying a significant economic change and developing a policy to address the change? Select one: a. Policy lag b. Impact lag c. Recognition lag d. Fatigue lag