Previous QuizPrev Quiz
The Federal Reserve System
Next QuizNext Quiz

M and B

Business

Quiz 14 :
The Federal Reserve System

Quiz 14 :
The Federal Reserve System

arrow
What are the main activities of Federal Reserve banks?
Free
Essay
Answer:

Answer:

The 12 Federal Reserve Banks in the United States perform a variety of functions. They are clearing checks, supervising and examining state member banks and bank holding companies. Besides, tracking the banking statistics on deposits that are part of the monetary aggregates, supplying currency and coin to financial institutions, holding the reserves of financial institutions, serving as the fiscal agent of the U.S. Treasury department, essentially keeping the government's check book, and acting as a lender of last resort.
The main functions related to Central Banking are economic research, supervision and regulation, discount window lending, monetary statistics, and consumer and community affairs. These functions are also performed by the Federal Reserve Banks.

arrow
What does an economist in the Federal Reserve System do compared with an economics professor at your college or university?
Free
Essay
Answer:

Answer:

An Economics professor in a college or university teaches to the students. Students have good knowledge in economics because they learn about economics from elementary stage. Whereas an Economist in the Federal Reserve System teaches about economic theories and data to the general public in a simple language.
The economist at the Federal Reserve Banks learns about the issues that are of interest to the public. It is the part of his normal duties. He shares his expertise and knowledge with public through public speaking and by writing articles that are understandable to non-economists. He educates the public about economics. He is in a unique position to provide economic education to the public. He provides information to policy makers in many ways.

arrow
What gives the chairman of the Board of Governors so much power and infl uence in the world?
Free
Essay
Answer:

Answer:

The Federal Reserve System's board of governors consists of seven governors. The chairperson of the board is the second most powerful person in the world. He is next to the president of the United States. The Chairman's power comes from the impact that monetary policy had on the U.S. economy and the importance of the U.S. economy in the world. On major issues, the Federal Reserve System speaks with one voice. That voice is the chairperson's. Behind closed doors, the governors may discuss and disagree. However, outside the Board's doors they support one position. They send clear signals about monetary policy.
Both Congress and the President of United States ask the chairperson of the board of Governors to advise them on economic matters, not just those related to monetary policy. Thus, the chairperson wields tremendous power.

arrow
What do Federal Reserve governors do? Why are they quoted so often in the press?
Essay
Answer:
arrow
Who serves on the Federal Open Market Committee (FOMC)? How does the vote rotate among the presidents of Federal Reserve banks?
Essay
Answer:
arrow
What is the FOMC directive, and why is it so important?
Essay
Answer:
arrow
What is the difference between the Beigebook, the Greenbook, and the Bluebook?
Essay
Answer:
arrow
What factors make the Fed independent from politics? Why is there so much political pressure on the Fed, despite its independence?
Essay
Answer:
arrow
How does the Fed work to protect itself from political pressure?
Essay
Answer:
arrow
Are there any good reasons to have 12 Federal Reserve banks scattered around the country rather than having everything run by the Board of Governors in Washington, D.C.? What are the costs and benefi ts?
Essay
Answer:
arrow
Why have some Federal Reserve governors complained about the economic staff at the Board of Governors? Is their concern about how the staff treats them or about how the chairman treats them?
Essay
Answer:
arrow
Suppose that you thought that some day you would become a member of the Board of Governors of the Fed. How would you prepare for the job? What would you study in college? What types of jobs would you seek after college?
Essay
Answer:
arrow
Evaluate the pros and cons of proposed legislation that would make the U.S. Secretary of the Treasury a member of the FOMC.
Essay
Answer: