In the United States, the central bank is the _________________.

Federal Reserve System
Federal Reserve Bank of New York
Bank of America
Federal Reserve Bank of Washington D.C.

All the following statements about a central bank are true except it ____________.

accepts personal deposits
is a public authority
supervises financial institutions
conducts monetary policy

One role of monetary policy is to control _______ by changing the _______.

inflation; quantity of money in circulation
the price level; government spending
unemployment; level of taxation
inflation; price level

The sum of coins held by households, firms, and commercial banks, Federal Reserve notes outside the Fed, and banks' deposits at the Fed is called the ________________.

monetary base
reserves of the Fed
assets of the Fed
liabilities of the Fed

The main policy-making organization of the Federal Reserve System is the _______________.

Federal Open Market Committee
team of Alan Greenspan and President Clinton
Federal Reserve Bank of New York
Board of Governors of the Fed

The interest rate that the Fed charges when it lends reserves to commercial banks is the ___________rate.

discount
Treasury bill
short-term
reserve

The Chairman of the Fed is appointed by ___________________.

the President of the United States
the Board of Governors of the Federal Reserve System
Congress
the U.S. Senate

An open market operation occurs when the ______________ buys or sells government securities _______________.

Federal Reserve System; in the open market
a commercial bank; from or to the federal government
a commercial bank; from or to the public
Federal Reserve System; from or to the federal government

Assets of the Fed include ______________.

gold and foreign exchange
Federal Reserve notes in circulation
banks' deposits with the Fed
Federal Reserve notes

An increase in currency held by households and firms is ________________.

a currency drain
income
wealth
a currency surplus

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