Why do you think the Fed maintains 5-year terms for Federal Reserve district bank presidents? O The terms are 5 years or less depending on when the district bank president in question reaches age 65. O Maintaining the 5-year terms helps ensure that the presidents are not unduly influenced by politicians. O Maintaining the 5-year terms helps to achieve the Fed's aim of confusing market participants about the stance of policy. O There is no deliberate strategy behind maintaining the 5-year terms.

Why do you think the Fed maintains 5-year terms for Federal Reserve district bank presidents? O The terms are 5 years or less depending on when the district bank president in question reaches age 65. O Maintaining the 5-year terms helps ensure that the presidents are not unduly influenced by politicians. O Maintaining the 5-year terms helps to achieve the Fed's aim of confusing market participants about the stance of policy. O There is no deliberate strategy behind maintaining the 5-year terms.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The Federal Reserve System and Open Market Operations_ Ask FRED The accompanying graph depicts the value of mortgage-backed securities held by the Federal Reserve over time. ALFRED IlMorgage-backed securities held by the Federal Reserve: All Maturities Vintage 2018-02-08 1,800,000 1,600,000 1,400,000 1,200,000 O 1.000,000 800,000 600,000 400,000 200,000 -200,000 2004 2006 2008 2010 2012 2014 2016 2005 Source: Board of Governors of the Federal Reserve System (US) a. What was the value of mortgage-backed securities the Fed held prior to 2009? Enter your answer in millions of dollars million
Which of the current parts of the Federal Reserve System was not a part of the Federal Reserve Act of 1913? O a. State chartered banks who choose to be members of the System O b. Nationally chartered banks Oc. Reserve Banks Od. Board of Governors
Why did the Fed abanon its traditional approach for setting the fed funds rate? (Select all that apply) 1. There was a stigma associated with discount lending from the Fed 2. There was a growing number of shadow banks that were not receiving the interest rate on reserves 3. Fed no longer wanted to pay the interest on reserves 4. Fed's large scale asset purchases largely expanded the supply of reserves
The Federal Reserve System is made up of the: Board of Governors and 12 Federal Reserve district banks. chair of the Federal Reserve, the president of the New York Federal Reserve district bank, and four other Federal Reserve district bank presidents. chair of the Federal Reserve and 12 Federal Reserve district banks. O president of the United States and 12 Federal Reserve district banks.
Federal funds are short-term loans made by the Federal Reserve to government agencies such as Fannie Mae and Freddie Mac. A True B) False
12. The primary case against keeping an independent Fed is? A. Prevent the development of an independent business cycle B. Lessen the Role of academic economists in running the country C. Allow the integration of monetary and Fiscal policy D. Introduce people with political now how into the decision making process
For all the questions below select the appropriate answer a) An open market purchase by the Bank of Canada would result in O a fall in the excess reserves held by commercial banks O a rise in the bank rate O an increase in commercial bank reserves and an expansion of bank lending and deposits. a fall in the money supply as commercial banks reduced their loans and deposits. b) When a central bank sets an inflation rate target as the primary goal of monetary policy: O it must also set a fixed exchange rate target that is independent of its inflation target. O it must also set a money supply target that is independent of its inflation target. O it must also accept the money supply, exchange and interest rate consistent with its inflation target O it must accept and support the govemment budget target set by the Minister of Finance. c) The Bank of Canada would use an SPRA when: O a temporary excess supply of monetary base puts downward pressure on the overnight interest rate. O a temporary…
N1