1. Which of the following does not qualiy as a potential Federal Reserve monetary policy action?

   	a.	buying or selling securities in the open market.
   	b.	changing required reserve ratios.
   	c.	raising or lowering discount rates.
   	d.	raising or lowering corporate income tax rates.

2. The "federal funds rate" is a/an:

   	a.	the interest rate charged on loans from the Federal Reserve.
   	b.	the interest rate charged by the U.S. Treasury when the Federal Reserve borrows from it.
   	c.	the rate at which the Federal budget deficit is growing.
   	d.	the interest rate on short-term loans, between financial institutions.
   	e.	the interest rate paid by the U.S. Treasury when it borrows.

3. When the Federal Reserve buys or sells government securities, it is using the tool of monetary policy known as:

   	a.	the discount rate
   	b.	reserve requirements
   	c.	capital requirements
   	d.	open market operations
   	e.	bank supervision and regulation

4. The Federal Reserve's "seasonal credit program" extends credit:

   	a.	to depositors who have lost their money due to the failure of a depository institution.
   	b.	to farmers, whose working capital needs are highly seasonal.
   	c.	to depository institutions that demonstrate a pattern of intra-year fluctuations in funding need.
   	d.	for any purpose, to depository institutions which are generally sound.
   	e.	only for dire emergency situations, as in the case of a failing depository institution.