HW3-10 (2)

HW3-10 (2) - Econ 1500- HW3: The Fed Part 1. The FedShort...

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Econ 1500-- HW3: The Fed Part 1. The Fed—Short Questions Go to the Fed’s website and read about the Fed: Purposes and Functions: http://www.federalreserve.gov/pf/pf.htm From chapters 1 and 3, answer these questions: 1. The FOMC is composed of the _______ members of the Board of Governors, the president of the Federal Reserve Bank of ________________, and ___________ presidents of the other Reserve Banks that serve on a rotating basis. 2. To supply reserves to the banking system, list two activities that the FED could undertake. 3. What securities does the New York FED Trading Desk (generally) trade when given instructions by the FOMC? 4. Does the FED Trade in the Federal Funds market? ____________ If yes, who else trades? If not, who does trade in the Federal Funds market where the Federal Fund rate is determined? 5. Traditionally, (before August 2007) if the FED needed to act as a lender of last resort to temporarily illiquid banks, what tool would it have probably used? 6.
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This note was uploaded on 10/09/2010 for the course ECON 1500 taught by Professor Carkovic during the Fall '10 term at Brown.

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HW3-10 (2) - Econ 1500- HW3: The Fed Part 1. The FedShort...

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