金融市场与机构Madura第九版题库ch04.doc

Chapter 4 Functions of the Fed 1. Which of the following is not a major component of the Federal Reserve System? A) member banks B) Federal Open Market Committee C) Securities and Exchange Commission D) Board of Governors ANSWER: C 2. Of the nine directors of each Fed district bank, ______ are elected by member banks in that district. A) 0 B) 9 C) 6 D) 3 ANSWER: C 3. Which of the following is not an activity of Fed district banks? A) clearing checks B) replacing old currency C) providing loans to depository institutions D) acting as an intermediary to match up lenders and borrowers in the stock market ANSWER: D 4. All ______ are required to be members of the Federal Reserve System. A) state banks B) national banks C) savings and loan associations D) finance companies E) A and B ANSWER: B 5. The _____________________ is made up of seven individual members, and each member is appointed by the president of the U.S. A) Board of Governors B) Federal Reserve district bank C) Federal Open Market Committee (FOMC) D) Securities and Exchange Commission ANSWER: A 6. Which of the following is currently a main role of the Federal Reserve’s Board of Governors? A) regulating commercial banks B) regulating foreign trade C) controlling monetary policy D) A and C ANSWER: D 7. Members of the Board of Governors serve 14-year nonrenewable terms. A) True B) False ANSWER: A 8. With regard to monetary policy, which of the following is under direct control of the Federal Reserve’s Board of Governors? A) revise reserve requirements for depository institutions B) authorize changes in the amount of borrowing by the Treasury C) monitor the stock market for insider trading D) monitor the derivatives market for illegal trading strategies ANSWER: A 9. The _____________ rate is the interest rate charged on Fed district bank loans to depository institutions. A) federal funds B) prime C) primary credit lending D) real ANSWER: C 10. Which of the following is an