QUESTION 2

Which of the following is NOT a function of the Fed?

A. Setting the level of interest on all Treasury securities

B. Regulating the payment mechanism in the banking system

C. Issuing Treasury securities on behalf of the U.S. government

D. Controlling the supply and cost of money

QUESTION 18

In performing Open Market Operations, the Fed would ___Treasury securities if it wishes to ____ money supply as a way to ___ the economy

A. Buy; reduce; stimulate

B. Sell; increase; slow down

C. Buy; increase; stimulate

D. None of the above is completely correct

QUESTION 19

One of the important provisions of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 1980 is: [I] State banks can only adhere to the reserve requirements stipulated by their respective state banking commissions [II] All banks, whether or not they choose to be part of the Fed, are required to keep reserves with the Fed * [III] Banks, which are members of the Fed, receive annual dividend yield of 6% * [IV] All banks, whether or not they are members of the Fed, have access to the Fed's discount window and check clearing *

A. I, II, III

B. II, III, IV

C. I, III, IV

QUESTION 25

Which of the following banking systems has membership of all commercial banks - state and national - in the United States?

		A. Federal Reserve System
		B. Eurosystem
		C. European System of Central Banks
		D. None