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QUESTION 45 The Federal Reserve purchases new Treasury securities directly from the U.S. Treasury. This assures the government that they can always finance deficits at

QUESTION 45

The Federal Reserve purchases new Treasury securities directly from the U.S. Treasury. This assures the government that they can always finance deficits at reasonable interest rates.

True

False

QUESTION 39

Following its meeting in January 2012, the FOMC issued a statement regarding its longer-run goals and monetary policy strategy. The FOMC noted in its statement that the Committee judges that inflation at the rate of 0% percent (as measured by the annual change in the price index for personal consumption expenditures, or PCE) is most consistent over the longer run with the Federal Reserve's statutory mandate.

True

False

1.96078 points

QUESTION 40

The FOMC communicates its inflation rate goals to help keep longer-term inflation expectations firmly anchored. This fosters price stability and moderate long-term interest rates and enhances the FOMC's ability to promote maximum employment.

True

False

QUESTION 34

Reserve Banks of the Federal Reserve System of the United States provide accounts to depository institutions--banks, thrifts, and credit unions--in which those institutions hold reserve balances, make loans to depository institutions, move currency and coin into and out of circulation, collect and process millions of checks and other payments each day, provide checking accounts and other services for the Treasury, issue and redeem government securities, and act in other ways as fiscal agent for the U.S. government.

True

False

QUESTION 24

Base your answers to the following question on the latest 10-K filed by Dime Community Bancshares (ticker symbol DCOM)

The FDIC does not regulate bank liquidity on credit risk.

True

False

QUESTION 22

Liquidity is the ability to meet cash flow needs on a timely basis at a reasonable cost.

True

False

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