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ch14 Student: ___________________________________________________________________________ 1. Which of the following is often described as the most powerful person in the U.S. economy? A. The president of the United States. B. The Speaker of the House of Representatives. C. The chairman of the House Ways and Means Committee. D. The chairman of the Federal Reserve. 2. The use of money and credit controls to change macroeconomic activity is known as: A. Fiscal policy. B. Monetary policy. C. Supply-side policy. D. Eclectic policy. 3. Monetary policy involves the use of money and credit controls to: A. Move the economy along the aggregate demand curve. B. Move the economy along the aggregate supply curve. C. Shift the aggregate demand curve. D. Shift the aggregate supply curve. 4. U.S. monetary policy relies on the: A. Federal Reserve System's control over taxes. B. Federal Reserve System's control over the money supply. C. President's control over the printing of money. D. President's control over interest rates. 5. Which of the following serves as the central banker for private banks in the United States? A. The 12 regional Federal Reserve banks. B. The Executive Branch of government. C. The Board of Governors of the Federal Reserve System. D. The Fed Open Market Committee. 6. Checks are cleared between private banks by: A. The 12 regional Federal Reserve banks. B. The Executive Branch of government. C. The Federal Reserve Board of Governors. D. State banking commissions. 7. The 12 regional Fed banks do all of the following except: A. Clear checks between private banks. B. Lend money to individuals. C. Provide currency to banks. D. Hold bank reserves. 8. The 12 regional Fed banks do not: A. Provide loans to banks. B. Hold reserves for banks. C. Accept deposits from individuals. D. Provide currency to banks. 9. The twelve regional Federal Reserve banks are responsible for: A. Accepting deposits from nonbank businesses. B. Providing currency to other countries. C. Lending money to individuals. D. Lending reserves to private banks. 10. Suppose Alan receives a check for $300 from a bank in Dallas. He deposits the check in his account at his Baltimore bank. Which of the following is Alan's Baltimore bank likely to collect the $300 from? A. The Baltimore bank's regional Federal Reserve bank. B. The U.S. Treasury. C. The main Federal Reserve Bank in Washington, D.C. D. The Federal Reserve Board of Governors. 11. Which of the following is responsible for holding bank reserves? A. The Federal Reserve Board of Governors. B. The 12 regional Federal Reserve banks. C. The Executive Branch of government. D. The Fed chairman. 12. Which of the following is responsible for providing currency and cash to banks? ... View Full Document

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