1. Subject to the approval of the board ofGovernors, the decision of choosing thepresident of a district Federal Reserve bank ismade by:A. All 9 district bankersB. The 6 district bank directors elected by themember banksC. 3 district bank directors who areprofessional bankersD. Class B and Class C directors2. Assuming initially that the required reserveratio = 10%, the currency-deposit ratio = 40%,and the excess reserve ratio = 0, a decrease inthe required reserve ratio to 5% causes theM1 money multiplier toeverything else held constant.A. Increase from 2.8 to 3.11B. Decrease from 3.11 to 2.8C. Increase from 2 to 2.22D. Decrease from 2.22 to 2%3D

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1. Subject to the approval of the board of Governors, the decision of choosing the president of a district Federal Reserve bank is made by: A. All 9 district bankers B. The 6 district bank directors elected by the member banks C. 3 district bank directors who are professional bankers D. Class B and Class C directors

1. Subject to the approval of the board of Governors, the decision of choosing the president of a district Federal Reserve bank is made by: A. All 9 district bankers B. The 6 district bank directors elected by the member banks C. 3 district bank directors who are professional bankers D. Class B and Class C directors

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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