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11. The Federal Reserve Board of Governors a. Always has a full complement of governors - no vacancies. b. Often has vacancies (due to resignation, death, etc.) so that Monetary Policy may be determined with fewer members than designed. c. Never has a vacancy since any need is immediately filled by a member of Congress. d. May be removed and replaced with an Executive Action any time the President of the USA desires. 12. The Federal Reserve Board of Governors is comprised of: a. Twelve Members: the twelve Federal Reserve Bank Presidents. b. Twenty-four Members: two representatives from each Federal Reserve District c. Seven Members: appointed by the President of the USA directly to the Board. d. Nine Members: three from the Senate, three from the House of Representative and three from the President's Cabinet staff. 13. The FOMC of the Federal Reserve System is comprised of a. Seven members appointed by the President of the USA and confirmed by Congress b. Ten members: the seven BOG members, one from the Senate, one from the Ilouse of Representatives, and one from the US Treasury Department. c. Twelve members: the seven BOGs and five of the twelve Federal Reserve District Bank Presidents. d. Twenty-four members: two representatives from each Federal Reserve District 14. The FOMC of the FED is responsible (has the direct authority) for a. Determining the level of required reserves for all financial institutions. b. Determining the level of the Discount Rate used by the individual Federal Reserve District Banks. c. Determining the level of open market operations held to achieve a given monetary policy goal d. Determining the amount of money issued by the US Treasury. 15. Which of the following is NOT a true statement concerning the operation of the FOMC of the FED: a. Since the BOG and the FRDB Presidents are present and/or voting at the FOMC meetings, all Monetary Policy tools are generally discussed and determined at these meetings. b. The Reserve Requirement is seldom an "active" monetary policy tool-it has only been changed about eleven times in the 100 year history of the FED. c. The Federal Reserve FOMC Policy decisions often consider, or even target, the Federal Funds Rate to achieve Monetary Policy goals. d. The Federal Reserve must receive permission from the US Treasury for all changes to Monetary Policy before implementation (taking action). 16. The FOMC a. Is the major designer of Monetary Policy for the FED. b. Is an advisory panel to the US Treasurer for Monetary Policy. c. Is an advisory panel to the President of the USA for Monetary Policy Is an advisory panel to the Congress of the USA for Monetary Policy. 17. The 12 Regional Federal Reserve District Banks: a. Are owned by the FED (Federal Reserve Bank), so that the FED receives dividends from each District Bank's operations cach year. b. Are owned by the US Treasury, and therefore receives dividends from cach bank each year when there are profits. c. Are owned by Federal Reserve FOMC, by investing up to 3% of their surplus into the system, for which the FOMC pays annual dividends. d. Are mutually owned by the membership banks within their District, and therefore appoint three members to the District Bank's Board of Directors, but have minimal influence over the operation of the District Bank. 18. The 12 Regional Federal Reserve District Banks: a. Each have a Board of Directors of twelve members selected from among active members of the District's community. b. Each have a Board of Directors of six members with three appointed by Congress and three from member banks in the District c. Each have a Board of Directors of nine members, with six elected from among the bank members within the District, but may include three elected from active business leaders from within the District, and three appointed by the BOG of the FED. d. Each have a Board of Directors selected and appointed for twelve years by the Senate of the USA Congress. 19. The 12 Regional Federal Reserve District Banks: a. Have the authority to set their own discount rate at a level and within a range approved by the FOMC. b. Have the authority to set their own discount rate at a level and within a range approved by the FED BOG (Board of Governors). c. Have the authority to set their own discount rate at a level and within a range approved by the US Treasurer. d. Implement the one and only Discount Rate set by the FED BOG - there is only one discount rate