ECN 211 Midterm 2 Exam Questions
and Answers 100% Pass
How many federal reserve regional banks are there? - CORRECT ANSWER-12
The Federal Reserve's Role as a lender of last resort involves lending to who?
A) US Banks that cannot borrow anywhere else
B)U.S. state governments when they run short on tax revenues
C) Governments in developing countries during currency crises - CORRECT
ANSWER-A
The federal reserve's primary tool for changing the money supply is the
A) Reserve Requirement
B) Discount Rate
C) Open market operation - CORRECT ANSWER-C
In order to increase the number of dollars in the US economy (money supply), the
federal reserve will ___ government bonds?
,A) buy
B) sell - CORRECT ANSWER-A
In order to decrease the number of dollars in the US economy (money supply), the
federal reserve will ___ government bonds?
A) buy
B) sell - CORRECT ANSWER-B
The FOMC is made up of the ____ members of the board of governors and
_____ of the twelve regional bank presidents
A) 7, 5
B) 5, 7
C) 6, 9
D) 9, 6 - CORRECT ANSWER-A
Which of the following is a responsibility of the Federal Open Market Committee
(FOMC)?
, A) Making decisions regarding monetary policy
B) Issuing mortgages to homeowners
C) Buying and selling stocks - CORRECT ANSWER-A
Which bank conducts all open-market operations for the Federal Reserve System?
A) Dallas Federal Reserve
B) LA Federal Reserve
C) New York Federal Reserve
D) Chicago Federal Reserve - CORRECT ANSWER-C
Which of the 12 regional federal bank presidents always gets a vote?
A) Dallas
B) New York
C) Chicago
D) LA - CORRECT ANSWER-B
How often does the FOMC meet?
A) approximately every 2 months
and Answers 100% Pass
How many federal reserve regional banks are there? - CORRECT ANSWER-12
The Federal Reserve's Role as a lender of last resort involves lending to who?
A) US Banks that cannot borrow anywhere else
B)U.S. state governments when they run short on tax revenues
C) Governments in developing countries during currency crises - CORRECT
ANSWER-A
The federal reserve's primary tool for changing the money supply is the
A) Reserve Requirement
B) Discount Rate
C) Open market operation - CORRECT ANSWER-C
In order to increase the number of dollars in the US economy (money supply), the
federal reserve will ___ government bonds?
,A) buy
B) sell - CORRECT ANSWER-A
In order to decrease the number of dollars in the US economy (money supply), the
federal reserve will ___ government bonds?
A) buy
B) sell - CORRECT ANSWER-B
The FOMC is made up of the ____ members of the board of governors and
_____ of the twelve regional bank presidents
A) 7, 5
B) 5, 7
C) 6, 9
D) 9, 6 - CORRECT ANSWER-A
Which of the following is a responsibility of the Federal Open Market Committee
(FOMC)?
, A) Making decisions regarding monetary policy
B) Issuing mortgages to homeowners
C) Buying and selling stocks - CORRECT ANSWER-A
Which bank conducts all open-market operations for the Federal Reserve System?
A) Dallas Federal Reserve
B) LA Federal Reserve
C) New York Federal Reserve
D) Chicago Federal Reserve - CORRECT ANSWER-C
Which of the 12 regional federal bank presidents always gets a vote?
A) Dallas
B) New York
C) Chicago
D) LA - CORRECT ANSWER-B
How often does the FOMC meet?
A) approximately every 2 months
