Central Banking and the Conduct of Monetary Policy SpeedMatch Review Game

What is 12?

The New York District contains many of the largest commercial banks in the United States
The New York Fed is actively involved in the bond and foreign exchange markets.
It is the only Federal Reserve Bank to be a member of the Bank for International Settlements (BIS).
The President of the New York Fed is the only permanent voting member of the FOMC.

Who are the Board of Governors?

What is the Phillips curve theory?

What is 200%?

Increase the supply of Federal Funds

What is The Beige Book?

What is Monetary Policy?

What is the nonaccelerating inflation rate of unemployment?

What is the Term Auction Facility (TAF)?

What is quasi-public?

What is a policy instument?

What is a liability?

Who is Ben Bernanke?

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.

What is the changes in the nonborrowed Monetary Base?

Increase the demand for Federal funds and increase the Federal funds rate.

What is the Federal Open Market Committee?

What is a Fed Watcher?

What are open market operations?

When is October 2008?

What is the Federal Funds Rate?

What is raises the demand for reserves?

a. Bank - Liability
b. Depositor - Asset
c. The Fe deral Reserve - Liability
d. Banks- Liability
e. Neither - Depositor

The manager would sell securities in order to lower bank reserves which would then lower the supply of reserves held.

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.

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

These are the goals of what?

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

How many Federal Reserve Districts are there?

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?

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?

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

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

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?

NAIRU

These three cirteria apply when choosing what?

Observability and Measurability
Controllable by the central bank
Must have predictable effect on the goals

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.

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

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.

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

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

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

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

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

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?

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

FOMC

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

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

An increase in the reserve requirement ratio will:

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Here are all the answers:

Description	Match:
As a group, these seven members head the Federal Reserve System.	Who are the Board of Governors?
NAIRU	What is the nonaccelerating inflation rate of unemployment?
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.
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?
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?
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?	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.
An open market purchase of securities by the Federal Reserve System will:	Increase the supply of Federal Funds
These three cirteria apply when choosing what? Observability and Measurability Controllable by the central bank Must have predictable effect on the goals	What is a policy instument?
An increase in the reserve requirement ratio will:	Increase the demand for Federal funds and increase the Federal funds rate.
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.	a. Bank - Liability b. Depositor - Asset c. The Fe deral Reserve - Liability d. Banks- Liability e. Neither - Depositor
Currency in circulation appears as what on the Federal Reserve System's balance sheet?	What is a liability?
The money supply rose by less than 25% despite the increase in the monetary base by what percentage?	What is 200%?
When the Fed raises reserve requirements, required reserves increase, which does what to the demand for reserves?	What is raises the demand for reserves?
How many Federal Reserve Districts are there?	What is 12?
These are the goals of what? Price Stability High Employment Economic Growth Financial Market Stability Interest Rate Stability Foreign Exchange Market Stability	What is Monetary Policy?
The interest rate banks charge each other when making overnight loans of reserves is called what?	What is the Federal Funds Rate?
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?
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?
FOMC	What is the Federal Open Market Committee?
Each of the Federal Reserve Banks is under this type of part private, part government ownership.	What is quasi-public?
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?
This former professor at Princeton University, became the Federal Reseve Chairman in 2006.	Who is Ben Bernanke?
Why is the New York Federal Reserve always a voting member on the FOMC?	The New York District contains many of the largest commercial banks in the United States The New York Fed is actively involved in the bond and foreign exchange markets. It is the only Federal Reserve Bank to be a member of the Bank for International Settlements (BIS). The President of the New York Fed is the only permanent voting member of the FOMC.
Financial Institutions hire these experts because of their insider view of Federal Reserve Operations.	What is a Fed Watcher?
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	What is the Term Auction Facility (TAF)?