Choose the correct answer: A) The Federal Reserve System: is the organization wh
ID: 1202150 • Letter: C
Question
Choose the correct answer:
A)The Federal Reserve System:
is the organization which insures deposits in banks and savings and loan associations.
is composed of seven regional banks, each headed by a member of the Board of Governors.
issues virtually all paper money used in the United States.
is part of the United States Treasury Department.
B)
B) Which of the following would tend to decrease the U.S. money supply?
a lowering of the discount rate.
a sale of securities on the open market by the Fed.
an inflow of gold into the United States.
a lowering of the reserve requirement.
C) Which of the following qualifies as reserves for a bank?
demand deposits with other commercial banks
U.S. Treasury Securities
deposits at the Federal Reserve bank
none of the above
*is the organization which insures deposits in banks and savings and loan associations.
*is composed of seven regional banks, each headed by a member of the Board of Governors.
*issues virtually all paper money used in the United States.
*is part of the United States Treasury Department.
Explanation / Answer
ans a)
issues virtually all paper money used in the United States.
ans b)
a sale of securities on the open market by the Fed.
when securities are sold by fed , less money will be available in circualtion when money is paid to fed inorder to purchase securities.
ans c) U.S. Treasury Securities