Questions from Financial Markets

Q: Discuss the structure, the functions, and the importance of the

Discuss the structure, the functions, and the importance of the Federal Open Market Committee.

Q: Identify the seven individuals who served as chairs of the Fed Board

Identify the seven individuals who served as chairs of the Fed Board of Governors since the early 1950s. Indicate each individual’s approximate time and length of service as chair.

Q: 1. The ability to meet depositor withdrawals and to pay off

1. The ability to meet depositor withdrawals and to pay off other liabilities when they come due reflects a. bank liquidity. b. bank solvency. c. default risk. d. interest rate risk. 2. The risk...

Q: Distinguish among the dynamic, defensive, and accommodative responsibilities of the

Distinguish among the dynamic, defensive, and accommodative responsibilities of the Fed.

Q: Identify and briefly describe the three traditional instruments that may be used

Identify and briefly describe the three traditional instruments that may be used by the Fed to set monetary policy.

Q: Describe what is meant by quantitative easing by the Fed.

Describe what is meant by quantitative easing by the Fed.

Q: Reserve Banks have at times been described as bankers’ banks due to

Reserve Banks have at times been described as bankers’ banks due to their lending powers. What is meant by this statement?

Q: Describe the two “targets” that the Fed can use when

Describe the two “targets” that the Fed can use when establishing monetary policy. Which target has the Fed focused on in recent years?

Q: Explain the usual procedures for examining national banks. How does this

Explain the usual procedures for examining national banks. How does this process differ from the examination of member banks of the Federal Reserve System holding state charters?

Q: What federal agencies are responsible for supervising and regulating depository institutions that

What federal agencies are responsible for supervising and regulating depository institutions that are not commercial banks?