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Quiz 5: VERSION A Name___________________________showing page 1 out of 2

Quiz 5: VERSION A
Name___________________________________
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement or
answers the question.
1) What makes the Federal Reserve so unique compared to other central banks around the world is
its _________.
A)
decentralized structure.
B) monetary policy functions.
C) regulatory functions.
D) centralized structure.
2) Which of the following is an entity of the Federal Reserve System? _________
A) The FDIC
B) The U.S. Treasury Secretary
C)
The FOMC
D) The Comptroller of the Currency
3) The Federal Reserve Banks are ________ institutions since they are owned by the ________.
A) quasi-public; Board of Governors
B) public; private commercial banks in the district where the Reserve Bank is located
C) public; Board of Governors
D)
quasi-public; private commercial banks in the district where the Reserve Bank is located
4) The nine directors of the Federal Reserve Banks are split into three categories: ________ are
professional bankers, ________ are leaders from industry, and ________ are to represent the public
interest and are not allowed to be officers, employees, or stockholders of banks.
A) 5; 2; 2
B) 4; 2; 3
C)
3; 3; 3
D) 2; 5; 2
5) Member commercial banks have purchased stock in their district Fed banks; the dividend paid by
that stock is limited by law to ________ percent annually.
A) four
B) five
C)
six
D) eight
6) The Federal Reserve Bank of ________ plays a special role in the Federal Reserve System
because it houses the open market desk.
A)
New York
B) San Francisco
C) Boston
D) Chicago
7) Members of the Board of Governors are
_________.
A)
appointed by the president of the United States and confirmed by the Senate.
B) chosen by the Federal Reserve Bank presidents.
C) never allowed to serve more than 7-year terms.
D) appointed by the newly elected president of the United States, as are cabinet positions.
8) The Federal Reserve entity that makes decisions regarding the conduct of open market operations
is the _________.
A)
Federal Open Market Committee.
B) Board of Governors.
C) Open Market Advisory Council
D) chairman of the Board of Governors.

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