Who is the Fed's chief executive, and what are the Fed's main policy tools? The Fed's chief executive is . The Fed's main policy tools are {:3 A. the Secretary of the Treasury; the monetary base and open market operations {:3 B. the president of the Atlanta Fed; monetary base and open market operations -:_ _;. C. the Chairman of the Board of Governors; required reserve ratios, discount rate, and open market operations. In unusual times, extraordinary crisis measures are an additional tool (j 22' D. the president of the Chicago Fed; required reserve ratios, discount rate, and open market operations 1:: j) E. the Secretary of the Treasury; the federal funds rate and discount rate Suppose that at the end of December 2009, the quantity of coins was $30 billion, Question list K the monetary base in the United States was $640 billion, and banks' reserves at the Fed were $10 billion. U Question 4 Calculate the Federal Reserve notes. . . . Question 5 Federal Reserve notes are $ billion. O Question 6 O Question 7Explain the Fed's policy tools and briefly describe how each works. (E The Fed uses its policy tools to if} A. inuence the interest rate and regulate the amount of money circulating in the United States by adjusting the reserves of the banking system ("E B. regulate the amount of money circulating in the United States by printing enough money each year for the purchase of consumer goods and services C. inuence the exchange rate and the country's trade balance by adjusting the interest rate ("2- D. keep the government budget debt under $20 trillion by adjusting loans to Congress By increasing the required reserve ratio, the Fed forces banks to hold a quantity of monetary base and the interest rate {I} A. smaller; rises CI- B. smaller; fails C. larger; rises ("2} D. larger; falls By lowering the interest rate, the Fed makes it costly for the banks to borrow monetary base and the interest rate more; rises {:33- A. i} B. less; falls {1:} C. more; falls {:2- D. less; rises When the Fed sells securities in the open market, the monetary base and the interest rate When the Fed sells securities in the open market, the monetary base and the interest rate increases; falls decreases; rises decreases; falls increases; rises POP\