As a group, these seven members head the Federal Reserve System.

NAIRU

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 money supply is positivly related to the nonborrowed monetary base MB. This is the result of what change?

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.

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?

An open market purchase of securities by the Federal Reserve System will:

These three cirteria apply when choosing what?

1. Observability and Measurability
2. Controllable by the central bank
3. Must have predictable effect on the goals

An increase in the reserve requirement ratio will:

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.

• a. You get a $10,000 loan from the bank to buy an automobile.
• b. You deposit $400 into your checking account at the local bank.
• c. The Fed provides an emergency loan to a bank for $1,000,000.
• d. A bank borrows $500,000 in overnight loans from another bank.
• e. You use your debt card to purchase a meal at a resturant for $100.

Currency in circulation appears as what on the Federal Reserve System's balance sheet?

The money supply rose by less than 25% despite the increase in the monetary base by what percentage?

When the Fed raises reserve requirements, required reserves increase, which does what to the demand for reserves?

How many Federal Reserve Districts are there?

These are the goals of what?

• Price Stability
• High Employment
• Economic Growth
• Financial Market Stability
• Interest Rate Stability
• Foreign Exchange Market Stability

The interest rate banks charge each other when making overnight loans of reserves is called what?

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.

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?

FOMC

Each of the Federal Reserve Banks is under this type of part private, part government ownership.

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?

This former professor at Princeton University, became the Federal Reseve Chairman in 2006.

Why is the New York Federal Reserve always a voting member on the FOMC?

Financial Institutions hire these experts because of their insider view of Federal Reserve Operations.

This functions is related to what Lending Facility

• extends loans of fixed amounts to banks at interest rates that are determined by competitive auction rather than being set by the Fed

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