Financial Markets and Institutions 8th Edition (Mishkin) Chapter 9 Study Guide
3) The unusual structure of the Federal Reserve System A) Americans' fear of centralized power.
is perhaps best explained by B) the traditional American distrust of moneyed interests.
C) Americans' desire to remove control of the money supply from the U.S.
Treasury.
D) all of the above.
E) only A and B of the above.
Answer: E
Topic: Chapter 9.1 Origins of the Federal Reserve System
4) The traditional American distrust of moneyed A) the failures of the first two experiments in central banking in the United
interests and the fear of centralized power help to States.
explain B) the decentralized structure of the Federal Reserve System.
C) why the Board of Governors of the Federal Reserve System is not located in
New York.
D) all of the above.
E) only A and B of the above.
Answer: D
Topic: Chapter 9.1 Origins of the Federal Reserve System
5) The financial panic of 1907 resulted in such
widespread bank failures and substantial losses to
depositors that the American public finally became
convinced that
6) Nationwide financial panics in 1873, 1884, 1893, and A) the First Bank of the United States served its intended role of lender of last
1907 might have been avoided had resort.
B) the Second Bank of the United States not been abolished in 1836 by
President Andrew Jackson.
C) the Second Bank of the United States served its intended role of lender of
last resort.
D) the Federal Reserve served its intended role of lender of last resort.
Answer: B
Topic: Chapter 9.1 Origins of the Federal Reserve System
Question Status: Previous Edition
7) The many regional Federal Reserve banks resulted A) the establishment of a central bank and those opposed to its establishment.
from a compromise between parties favoring B) a private central bank and those favoring a government institution.
C) the establishment of the Board of Governors in Washington, D.C., and those
preferring its establishment in New York City.
D) none of the above.
Answer: B
Topic: Chapter 9.1 Origins of the Federal Reserve System
, Financial Markets and Institutions 8th Edition (Mishkin) Chapter 9 Study Guide
8) Which of the following is an element of the Federal A) The Federal Reserve banks
Reserve System? B) The Board of Governors
C) The FDIC
D) All of the above
E) Only A and B of the above
Answer: E
Topic: Chapter 9.2 Structure of the Federal Reserve System
9) Which of the following is an element of the Federal A) The Federal Reserve banks
Reserve System? B) The Board of Governors
C) The FOMC
D) All of the above
Answer: D
Topic: Chapter 9.2 Structure of the Federal Reserve System
10) Which of the following is not an entity of the Federal A) Federal Reserve banks
Reserve System? B) The FDIC
C) The Board of Governors
D) The Federal Advisory Council
E) Member commercial banks
Answer: B
Topic: Chapter 9.2 Structure of the Federal Reserve System
11) Which of the following functions are not performed A) Check clearing
by any of the twelve regional Federal Reserve banks? B) Conducting economic research
C) Setting interest rates payable on time deposits
D) Issuing new currency
Answer: C
Topic: Chapter 9.2 Structure of the Federal Reserve System
12) Which Federal Reserve Bank president always has a A) Philadelphia
vote in the Federal Open Market Committee? B) New York
C) Boston
D) San Francisco
Answer: B
Topic: Chapter 9.2 Structure of the Federal Reserve System
13) Each Fed bank president attends FOMC meetings; A) three; ten
although only ________ Fed bank presidents vote on B) five; ten
policy, all ________ provide input. C) three; twelve
D) five; twelve
Answer: D
Topic: Chapter 9.2 Structure of the Federal Reserve System
3) The unusual structure of the Federal Reserve System A) Americans' fear of centralized power.
is perhaps best explained by B) the traditional American distrust of moneyed interests.
C) Americans' desire to remove control of the money supply from the U.S.
Treasury.
D) all of the above.
E) only A and B of the above.
Answer: E
Topic: Chapter 9.1 Origins of the Federal Reserve System
4) The traditional American distrust of moneyed A) the failures of the first two experiments in central banking in the United
interests and the fear of centralized power help to States.
explain B) the decentralized structure of the Federal Reserve System.
C) why the Board of Governors of the Federal Reserve System is not located in
New York.
D) all of the above.
E) only A and B of the above.
Answer: D
Topic: Chapter 9.1 Origins of the Federal Reserve System
5) The financial panic of 1907 resulted in such
widespread bank failures and substantial losses to
depositors that the American public finally became
convinced that
6) Nationwide financial panics in 1873, 1884, 1893, and A) the First Bank of the United States served its intended role of lender of last
1907 might have been avoided had resort.
B) the Second Bank of the United States not been abolished in 1836 by
President Andrew Jackson.
C) the Second Bank of the United States served its intended role of lender of
last resort.
D) the Federal Reserve served its intended role of lender of last resort.
Answer: B
Topic: Chapter 9.1 Origins of the Federal Reserve System
Question Status: Previous Edition
7) The many regional Federal Reserve banks resulted A) the establishment of a central bank and those opposed to its establishment.
from a compromise between parties favoring B) a private central bank and those favoring a government institution.
C) the establishment of the Board of Governors in Washington, D.C., and those
preferring its establishment in New York City.
D) none of the above.
Answer: B
Topic: Chapter 9.1 Origins of the Federal Reserve System
, Financial Markets and Institutions 8th Edition (Mishkin) Chapter 9 Study Guide
8) Which of the following is an element of the Federal A) The Federal Reserve banks
Reserve System? B) The Board of Governors
C) The FDIC
D) All of the above
E) Only A and B of the above
Answer: E
Topic: Chapter 9.2 Structure of the Federal Reserve System
9) Which of the following is an element of the Federal A) The Federal Reserve banks
Reserve System? B) The Board of Governors
C) The FOMC
D) All of the above
Answer: D
Topic: Chapter 9.2 Structure of the Federal Reserve System
10) Which of the following is not an entity of the Federal A) Federal Reserve banks
Reserve System? B) The FDIC
C) The Board of Governors
D) The Federal Advisory Council
E) Member commercial banks
Answer: B
Topic: Chapter 9.2 Structure of the Federal Reserve System
11) Which of the following functions are not performed A) Check clearing
by any of the twelve regional Federal Reserve banks? B) Conducting economic research
C) Setting interest rates payable on time deposits
D) Issuing new currency
Answer: C
Topic: Chapter 9.2 Structure of the Federal Reserve System
12) Which Federal Reserve Bank president always has a A) Philadelphia
vote in the Federal Open Market Committee? B) New York
C) Boston
D) San Francisco
Answer: B
Topic: Chapter 9.2 Structure of the Federal Reserve System
13) Each Fed bank president attends FOMC meetings; A) three; ten
although only ________ Fed bank presidents vote on B) five; ten
policy, all ________ provide input. C) three; twelve
D) five; twelve
Answer: D
Topic: Chapter 9.2 Structure of the Federal Reserve System
