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Chapter 14 - Money, Banking, and Financial Institutions
57. The Federal Reserve System consists of which of the following?
58. How many members can serve on the Board of Governors of the Federal Reserve
System?
59. How long is the term of office for members appointed to serve on the Board of Governors
of the Federal Reserve System?
Chapter 14 - Money, Banking, and Financial Institutions
60. When was the Federal Reserve System established?
61. The Federal Reserve System of the U.S. is the country's:
62. Members of the Federal Reserve Board of Governors are:
Chapter 14 - Money, Banking, and Financial Institutions
63. Which group assists the Board of Governors of the Federal Reserve System in
64. The Federal Open Market Committee (FOMC):
65. The Federal Open Market Committee (FOMC) of the Federal Reserve System is primarily
for:
Chapter 14 - Money, Banking, and Financial Institutions
66. The twelve Federal Reserve Banks can best be characterized as:
67. The most important of the Federal Reserve district banks is the:
68. How many Federal Reserve Banks are there?
Chapter 14 - Money, Banking, and Financial Institutions
69. The Federal Reserve System is divided into:
70. Holding the money deposits of businesses and households and making loans to the public
are the basic functions of:
71. Which of the following is the most important function of the Federal Reserve System?
Chapter 14 - Money, Banking, and Financial Institutions
72. When the Fed acts as a "lender of last resort", like it did in the financial crisis of 2007-
2008, it is performing its role of:
73. Which group is responsible for the policy of changing the money supply?
74. The main function of the Federal Reserve System is to:
Chapter 14 - Money, Banking, and Financial Institutions
75. The Federal Reserve System performs many functions but its most important one is:
76. The Federal Reserve System performs the following functions, except:
77. The Federal Reserve System is an:
Chapter 14 - Money, Banking, and Financial Institutions
78. Economic studies conducted in industrially advanced countries suggest there is:
79. The Financial Crisis of 2007-2008 started in which sector of the economy?
80. The major wave of defaults on home mortgages in 2007 destabilized:
Chapter 14 - Money, Banking, and Financial Institutions
81. Subprime mortgage loans are all of the following, except:
82. When a bank's loans are written off, it means that the bank's:
83. When a bank's loans are written off, then the bank's:
Chapter 14 - Money, Banking, and Financial Institutions
84. The so-called mortgage-backed securities are all of the following, except:
85. The causes of the skyrocketing mortgage default rates that triggered the financial crisis on
2007-2008 include the following, except:
86. Securitization, the process of forming new securities by bundling or slicing up groups of
securities like mortgages and bonds, is:
Chapter 14 - Money, Banking, and Financial Institutions
87. The destabilizing effects of defaulting mortgages quickly spread throughout the financial
system because those mortgages were involved in widespread:
88. The "bail-out" money that went to giant financial institutions like Citibank and Goldman
Sachs, along with General Motors and Chrysler, came from the
89. The government bail-out of the large institutions creates the problem of moral hazard,
which means that these large firms will:
Chapter 14 - Money, Banking, and Financial Institutions
91. Which of the following bank-related policies of the Fed fosters huge moral hazard
problems?
92. Traditionally, the Federal Reserve can give emergency loans only to:
