Misc. | ||
#1 | As a group, these seven members head the Federal Reserve System. |
Who are the Board of Governors? |
#2 | NAIRU |
What is the nonaccelerating inflation rate of unemployment? |
#3 | If the manager of the market desk hears that a snowstorm is about to strike New York City, making it difficult to present checks for payment there and so raising the float, what defensive open market operations will the manager undertake? |
The manager would sell securities in order to lower bank reserves which would then lower the supply of reserves held. |
#4 | The money supply is positivly related to the nonborrowed monetary base MB. This is the result of what change? |
What is the changes in the nonborrowed Monetary Base? |
#5 | This book, distributed publicly by the Fed, details evidence gleaned either from surveys or from talks with key businesses and financial institutions on the state of the economy in each of the Federal Reserve districts. |
What is The Beige Book? |
Questions | ||
#1 | This question can be found in the text on page 352. It is questions #5
If a bank sells $10 million of bonds to the Fed to pay back $10 milion on the loan it owes, what will be the effet on the level of checkable deposits?
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The $10 million Fed purchase of bonds increases reserves in the banking system by $10 million, and the total increase in checkable deposits is $10 million. The fact that banks buy securities rather than make loans with their excess reserves makes no difference in the multiple deposit creation process. |
#2 | An open market purchase of securities by the Federal Reserve System will: |
Increase the supply of Federal Funds |
#3 | These three cirteria apply when choosing what?
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What is a policy instument? |
#4 | An increase in the reserve requirement ratio will: |
Increase the demand for Federal funds and increase the Federal funds rate. |
#5 | This question can be found on page 350. Question #1
Classify each of thses transactions as either an asset, a liablility, or neither for the "players" in the money supply process - The Federal Reserve, Banks, and Depositors.
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Figures from Text | ||
#1 | Currency in circulation appears as what on the Federal Reserve System's balance sheet? |
What is a liability? |
#2 | The money supply rose by less than 25% despite the increase in the monetary base by what percentage? |
What is 200%? |
#3 | When the Fed raises reserve requirements, required reserves increase, which does what to the demand for reserves? |
What is raises the demand for reserves? |
#4 | How many Federal Reserve Districts are there? |
What is 12? |
#5 | These are the goals of what?
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What is Monetary Policy? |
Definition | ||
#1 | The interest rate banks charge each other when making overnight loans of reserves is called what? |
What is the Federal Funds Rate? |
#2 | This theory indicates that changes in inflation are influenced by the state of the economy relative to its productive capacity, as well as by other factors. |
What is the Phillips curve theory? |
#3 | The Federal Reserve exercises control over the monetary base through its purchases or sales of securities in the open market, which are what type of operations? |
What are open market operations? |
#4 | FOMC |
What is the Federal Open Market Committee? |
#5 | Each of the Federal Reserve Banks is under this type of part private, part government ownership. |
What is quasi-public? |
Inside the Fed | ||
#1 | In 2006 congress passed legislation for the Federal Reserve to pay interest on reserves going into effcet in 2011. Due to the global financial crisis this date was changed. When did the Federal Reserve begin to pay interest on reserves? |
When is October 2008? |
#2 | This former professor at Princeton University, became the Federal Reseve Chairman in 2006. |
Who is Ben Bernanke? |
#3 | Why is the New York Federal Reserve always a voting member on the FOMC? |
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#4 | Financial Institutions hire these experts because of their insider view of Federal Reserve Operations. |
What is a Fed Watcher? |
#5 | This functions is related to what Lending Facility
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What is the Term Auction Facility (TAF)? |
Final Question | |
Did you enjoy this Jeopardy Game? |
We hope you said YES! |