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Question 381 / 1 ptsThe FOMC meets every month unless conditions warrant more frequent meetings.
TrueCorrect!FalseQuestion 391 / 1 ptsThe Philadelphia Federal Reserve Bank is responsible for monitoring economic activity in their district which includes the economic activity in State College, PA.Question 401 / 1 ptsAccording to the lecture discussing the October 2012 FOMC statement, the Fed plans on buying $85 billion per month in longer term securities in hopes of lowering long term interest rates. Question 411 / 1 ptsAccording to the lecture discussing the October 2012 FOMC statement, they plan on keeping their target for the federal funds rate in the range of 0 - 0.25% at least through mid 2015.Correct!
Question 421 / 1 ptsAll regional bank presidents of the Federal Reserve system vote at all FOMC meetings.TrueCorrect!FalseQuestion 431 / 1 ptsOpen market operations influence reserve supply. For example, an open market sale will increase reserve supply. Question 441 / 1 ptsAccording to our discussion on the FOMC statement from August 2007, the Fed was worried about inflation getting too high. Correct!Question 451 / 1 ptsFollowing the 2001 recession (aka, the job-loss recovery), the Federal Reserve lowered their target for the federal funds rate all the way down to 1%.Correct!
Question 461 / 1 ptsFollowing the job-loss recovery, the FOMC raised the target for the federal funds rate 17 meetings in a row. Correct!TrueFalseQuestion 471 / 1 ptsSince December 2007, the federal funds rate has been at the zero bound with the official target being a range from zero to 0.25%.Question 481 / 1 ptsDuring the lead up to Y2K, reserve demand was decreasing since banks wereafraid to make loans.Question 49
1 / 1 ptsDuring the lead up to Y2K, the Fed, to keep the federal funds rate from rising,had to conduct open market purchases. This action is referred to as 'accommodating' the shock to reserve demand.Correct!Question 501 / 1 ptsDuring normal times, before the zero bound, the Fed forecasts reserve demand and supplies the necessary reserves to meet their federal funds target. The better the forecast, the closer the actual federal funds rate is to the target federal funds rate. Correct!TrueFalse