Matching- Structure of the Federal Reserve Вoard of Governors RESERVE 12 Reserve Banks Federal Open Market Committee 7 0000000 : Regional Power :: Central Power :: Monetary Policy Making Committee E FOMC i

11 1 point Table 30-4 Reserves Loans Bank of Socorro Assets Liabilities $4,800 Deposits 75,200 $80,000 Refer to Table 30-4. Assume the Fed's reserve requirement is 4 percent and all banks besides the Bank of Socorro are exactly in compliance with the 4 percent requirement. Further assume that people hold only deposits and no currency. Starting from the situation as depicted by the T-account, if the Bank of Socorro decides to make new loans so as to end up with no excess reserves, then by how much does the money supply eventually increase? $40,756.98 $40,000.00 $26,666.67 $42,930.49

The major monetary policy making arm of the Federal Reserve is the    A. Office of the Comptroller of the Currency   B. Federal Reserve Bank of New York   C. none of them   D. Board of Governors

17

All of the presidents of the regional Federal Reserve banks A. attend each FOMC meeting. B. have voting rights at each FOMC meeting. C. are appointed by the president of the U.S. and confirmed by the U.S. Senate. D. All of the above are correct.

Which of the following is NOT a function of the Fed? Offering checking accounts to the U.S. public O Regulating the money supply in the economy Acting as the federal government's banker O Providing a system of check collection and clearing for depository institutions