CHAP016 - Chapter 16 The Structure of Central Banks: The...

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Chapter 16 The Structure of Central Banks: The Federal Reserve and the European Central Bank Multiple Choice Questions 1. The Federal Reserve was created in: A) 1929 B) 1913 C) 1909 D) 1945 Answer: B LOD: 1 Page: 401 A-Head: The Structure of the Federal Reserve System. 2. The Federal Reserve System is composed of: A) Five branches with clear responsibilities. B) Six branches with overlapping responsibilities. C) Three branches with overlapping responsibilities. D) Twelve branches with clear responsibilities. Answer: C LOD: 2 Page: 402 A-Head: The Structure of the Federal Reserve System. 3. Member banks of the Federal Reserve System include: A) All nationally chartered banks. B) All state chartered banks with assets exceeding $100 million. C) State chartered banks that decide to join. D) a and b E) a and c Answer: E Page: 402 A-Head: The Structure of the Federal Reserve System. 4. The three branches of the Federal Reserve System include each of the following, EXCEPT: A) The Board of Governors. B) The Federal Deposit Insurance Corporation. C) The Federal Open Market Committee. D) The Twelve regional Reserve Banks. Answer: B LOD: 1 Page: 402 A-Head: The Structure of the Federal Reserve System. Cecchetti: Money, Banking, and Financial Markets 463
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The Structure of Central Banks: The Federal Reserve and the European Central Bank 5. Considering State chartered banks: A) Most elect to join the Federal Reserve System. B) Those with assets exceeding $100 million must join the Federal Reserve System. C) Most elect not to join the system. D) Only those that join the system must abide by reserve requirements. E) c and d Answer: C LOD: 2 Page: 402 A-Head: The Structure of the Federal Reserve System. 6. Prior to 1980: A) Member banks of the Federal Reserve did not have to hold non-interest earning reserve deposits at the Fed. B) Non member banks had to hold non-interest earning reserve deposits at the Fed. C) Non member banks did not have to hold non-interest earning reserve deposits at the Fed. D) All banks member or not had to hold reserve deposits at the Fed in a non-interest earning account. Answer: C LOD: 2 Page: 402 A-Head: The Structure of the Federal Reserve System. 7. Currently the requirement of holding a non-interest earning reserve account at the Fed must be met by: A) All banks, member or not. B) Only member banks. C) Member banks and non-member banks over $100 million in assets. D) Only nationally chartered banks. Answer: A LOD: 1 Page: 402 A-Head: The Structure of the Federal Reserve System. 8. The number of regional Federal Reserve Banks is: A) Nine B) Seven C) Five D) Twelve. Answer: D LOD: 1 Page: 402 A-Head: The Structure of the Federal Reserve System. 464
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This note was uploaded on 02/12/2012 for the course ECON 101 taught by Professor Abrams during the Spring '11 term at Adams State University.

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CHAP016 - Chapter 16 The Structure of Central Banks: The...

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