QUESTION 33 Ways the regional Federal Reserve banks influence the conduct of mon
ID: 2774551 • Letter: Q
Question
QUESTION 33
Ways the regional Federal Reserve banks influence the conduct of monetary policy include ______.
having five presidents sit on the FOMC.
lending to the central bank.
borrowing from the central bank.
borrowing from commercial banks.
1 points
QUESTION 34
Criteria for the Fed choosing a policy instrument includes _______.
lack of measurability.
minimum controlability.
watching the stock market.
predictable effect on goals.
1 points
QUESTION 35
Standard accounting principles help financial markets work more efficiently by _______.
A. making profit verification easier.
B. reducing moral hazard.
C. increasing adverse selection.
Both A and B
having five presidents sit on the FOMC.
lending to the central bank.
borrowing from the central bank.
borrowing from commercial banks.
Explanation / Answer
Answer: 33 Ways the regional Federal Reserve banks influence the conduct of monetary policy include having the five presidents sit on the FOMC.
Federal reserve banks have 5 of the 12 votes on the FOMC which makes decisions for open market operations and hence influence the conduct of monetary policy.
Answer: 34 Criteria for the Fed choosing a policy instrument includes predictable effect on goals.
Criteria for the Fed choosing a policy instrument are :
Answer: 35 Standard accounting principles help financial markets work more efficiently by Both A and B