Question

1) Among the members of the Federal Open Market Committee

a) is the Chair of the Senate Banking Committee.

b) are the seven members of the Board of Governors of the Fed.

c) is the Secretary of the Treasury.

d) is the Comptroller of the Currency.

2) When checks are exchanged between banks, the Fed oversees the banks to ensure the appropriate funds have been transferred. This is known as

a) check kiting.

b) check balancing.

c) check floating.

d) check clearing.

3) The Fed acts as a lender of last resort for the banking system.

a) True

b) False

4) The Federal Reserve is responsible for monetary policy in the United States.

a) True

b) False

5) The central function of the Fed is to help manage the macroeconomy by setting the interest rate.

a) True

b) False

Answer 1

a) "B"

are the seven members of the Board of Governors of the Fed.

b) "D"

this is known as check clearing by the FED.

c) True, the Fed is the lender of the last resort for the US banks.

d) True, the Fed is responsible for the monetary policy in the US.

e) False, they manage the money supply to manage the macroeconomy the interest rate is an outcome of that.