13 to 19

13. The Fed changes reserve requirements from 10% to 12%, thereby eliminating S650 million in excess reserves The total change in deposits (with no drains) would be increase by $5.417 billion increase by $6.500 billion A) B) C) decrease by $5.417 billion D) decrease by $6.500 billion conduit through which monetary policy actions of the Federal Reserve are transmited A primary to the economy are A) investment banks B) depositary institutions. 14. C) mutual funds D) insurance companies. Is. On the Fed's balance sheet, reserves consist of and 15. A) vault cash; US treasury securities B) vault cash; coins C) US treasury securities; repurchase agreements D) depository institution reserves; vault cash 16. The primary policy tool used by the Fed to meet its monetary policy goals is: A) Changing the discount rate B) Changing reserve requirements C) Open market operations D) Changing bank regulations 17. When the Fed the discount rate, they are sending a signal to the market that they would interest rates andborrowing like to see A) raises; higher, more B) lowers; higher, more C) lower; lower, less D) raises; higher, less E) raises; lower, les A decrease in reserve requirement ratio could lead to a(a) A) increase in bank lending B) decrease in the money supply C) decrease in the discount rate 18. D) Both A and B E) Both B and C The dual mandate of the Federal Open Market Committee(FOMC) is to foster A) maximum employment and maximum inflation rate B) minimum employment and minimum inflation rate 19. C) maximum employment and maximum price stability D) maximum employment and minimum price stability