SOLVED

21) Congress created the Federal Reserve System in 1913 as the institution delegated to administer A) monetary policy to stabilize the economy. B) the constitutional power of Congress to “coin money and regulate the value thereof.” C) collect taxes for the federal government. D) the minting of coins. 22) Over time, overall responsibility for formulating monetary policy has become increasingly concentrated in the A) Federal Reserve Bank of New York. B) Council of Economic Advisors. C) Federal Deposit Insurance Corporation. D) Federal Reserve Board of Governors. 23) Which of the following is not a permanent member of the FOMC? A) The president of the New York Fed B) The president of the Philadelphia Fed C) The chairman of the board of governors D) All of the above are permanent members of the FOMC. 24) Which of the following is an accurate statement regarding the evolution of the Federal Reserve System? A) The independence of the Federal Reserve has been systematically eroded by legislation. B) The Federal Reserve has shifted from an agency controlled by the states to a federally controlled agency. C) The Federal Reserve has shifted from a fiscal policy agency to a monetary policy agency. D) The Federal Reserve has shifted from a regional service agency to a national policy-making institution. 25) Over the past seventy-five years, power within the Federal Reserve has shifted from A) the Federal Reserve Banks to the Board of Governors in Washington. B) the Board of Governors to the Federal Reserve Bank of New York. C) domestic Federal Reserve banks to foreign Federal Reserve banks. D) the Federal Reserve Bank of New York to the Federal Reserve Bank of Dallas. 26) In terms of informal power within the Federal Reserve, which of the following groups do experts regard as the most powerful? A) The Federal Advisory Council B) The economic staff of the U.S. Department of Commerce C) The economic staff of the Board of Governors D) Federal Reserve Bank directors 27) Which of the following is a permanent member of the Federal Open Market Committee? A) President of the New York Federal Reserve Bank B) President of the Washington, D.C. Federal Reserve Bank C) Comptroller of the Currency D) Secretary of the Treasury 28) Voting members of the Federal Open Market Committee are A) the Board of Governors, the presidents of five Federal Reserve Banks, and the Comptroller of the Currency. B) the Board of Governors and presidents of five Federal Reserve Banks. C) the Board of Governors and all twelve Federal Reserve Bank presidents. D) the Board of Governors, all twelve Federal Reserve Bank presidents, and the Secretary of the Treasury. 29) All twelve Federal Reserve Bank presidents A) attend Federal Open Market Committee Meetings. B) vote on decisions regarding the discount rate. C) vote on decisions regarding the prime rate. D) vote on decisions regarding bank reserve requirements. 30) Discount rates are __________ every two weeks by the directors of each regional Federal Reserve Bank but are __________ by the Board of Governors. A) determined; established B) established; determined C) recommended; established D) determined; recommended