1. The Federal Reserve is the ________of last resort.
2. The San Francisco Federal Reserve Bank is the only one in the West because San Francisco outbid Los Angeles to be its host. ________ (True/False)
3. The ________votes on monetary policy.
4. ________ -year terms help ensure the political independence of the Board of Governors.
5. The Fed provides a system of check collection and ________.
6. The Treasury Secretary and the Fed. Occasionally, some economists or politicians suggest that the secretary of the Treasury become a member of the Federal Open Market Committee. How do you think this would affect the operation of the Federal Reserve?
7. Where Should Regional Banks Be Located Today? Given the changes in the location of economic activity those have occurred since the founding of the Federal Reserve, how would the location of the regional banks change if they were allocated by economic activity?
8. The President of the New York Federal Reserve Bank. The president of the New York Federal Reserve Bank is always a voting member of the Federal Open Market Committee. Given your understanding of the conduct of monetary policy, why is this true?
9. How Much Oversight? After the financial crisis in 2008, Congress wanted to have more oversight of the Fed and some suggested that the Government Accountability Office even audit the decisions of the Fed. What are the risks of this increased oversight?