This paperwork of ECO 316 Week 4 Chapter 19 Organization of Central Banks shows the solutions to the following problems:<\/b><\/p>\n
19.1 Multiple Choice Questions<\/p>\n
1) In October 2005, President Bush nominated which of the following to be chair of the Federal Reserve?<\/p>\n
2) Who is Alan Greenspan?<\/p>\n
3) Who is Trichet?<\/p>\n
4) Why has the Federal Reserve chairman often been called the second most important person in the nation?<\/p>\n
5) Who organized the Bank of the United States?<\/p>\n
6) Which groups were opposed to the Bank of the United States?<\/p>\n
7) Which president failed to re the charter of the Second Bank of the United States?<\/p>\n
8) The movement to set up a central bank in the United States was spurred by the financial panic that occurred in<\/p>\n
9) Who had served as a de facto lender of last resort during the 1907 panic?<\/p>\n
10) The National Monetary Commission<\/p>\n
11) When did the Federal Reserve Act become law?<\/p>\n
12) Which of the following is NOT a way in which power was divided up in the Federal Reserve System?<\/p>\n
13) Which of the following is NOT considered one of the four principal groups in the Federal Reserve System?<\/p>\n
14) In 1913, Congress and the President did not envision that the Fed would control<\/p>\n
15) How many Federal Reserve districts are there?<\/p>\n
16) Which of the following cities contains a Federal Reserve bank?<\/p>\n
17) Which of the following cities does NOT contain a Federal Reserve bank?<\/p>\n
18) Which of the following Federal Reserve district banks was NOT a major population center at the time the Fed was created?<\/p>\n
19) Federal Reserve districts<\/p>\n
20) Who owns the Federal Reserve banks?<\/p>\n
21) Which best describes the Federal Reserve district banks?<\/p>\n
22) Which of the following statements is correct?<\/p>\n
23) The members of Federal Reserve district bank boards of directors who are bankers are known as<\/p>\n
24) The members of Federal Reserve district bank boards of directors who represent the public interest are known as<\/p>\n
25) The members of Federal Reserve district bank boards of directors who are leaders in industry, commerce, and agriculture are known as<\/p>\n
26) The members of Federal Reserve district bank boards of directors appointed by the Board of Governors are known as<\/p>\n
27) Which of the following is NOT an activity carried out by Federal Reserve district banks?<\/p>\n
28) The Federal Reserve district banks<\/p>\n
29) Federal Reserve banks perform all of the following roles EXCEPT<\/p>\n
30) What is the name of the entity, composed of Federal Reserve district bankers, that consults on monetary policy?<\/p>\n
31) Under the Federal Reserve Act, which banks must be members of the Federal Reserve System?<\/p>\n
32) What percentage of all banks in the United States belong to the Federal Reserve System?<\/p>\n
33) Why did fewer state banks choose to become or remain members of the Federal Reserve System during the 1960s and 1970s?<\/p>\n
34) The reserve tax refers to<\/p>\n
35) The Depository Institutions Deregulation and Monetary Control Act of 1980<\/p>\n
36) Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?<\/p>\n
37) About how many banks are Federal Reserve System members?<\/p>\n
38) Members of the Board of Governors are<\/p>\n
39) Members of the Board of Governors<\/p>\n
40) Which of the following men has NOT served as Chairman of the Board of Governors?<\/p>\n
41) What is the length of a term for the Chairman of the Board of Governors?<\/p>\n
42) The margin requirement set by the Federal Reserve is the<\/p>\n
43) Which of the following is NOT a responsibility of the Board of Governors?<\/p>\n
44) The beige book is prepared by<\/p>\n
45) The national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the<\/p>\n
46) The Chairman of the Federal Open Market Committee is also<\/p>\n
47) The president of which Federal Reserve bank is always a member of the Federal Open Market Committee?<\/p>\n
48) To conduct open market operations, the FOMC issues a directive to<\/p>\n
49) The Banking Acts of 1933 and 1935<\/p>\n
50) The Treasury was in conflict with Alan Greenspan early in the Bush administration because the Treasury<\/p>\n
51) Most Fed watchers believe that the Fed is<\/p>\n
52) Member banks<\/p>\n
53) Elections to the boards of directors of Federal Reserve district banks<\/p>\n
54) According to Sherman Maisel’s experience, the most powerful group in the Fed, apart from the chairman of the Board of Governors, is<\/p>\n
55) Which of the following statements is correct?<\/p>\n
56) The Fed does not have to go through the normal congressional appropriations process because<\/p>\n
57) What is the main reason the Fed operates in a political arena?<\/p>\n
58) All of the following help make the Fed independent of the political process EXCEPT<\/p>\n
59) Most of the Fed’s earnings come from<\/p>\n
60) Which of the following statements is correct?<\/p>\n
61) Governors of the Fed often do not serve their full fourteen-year terms because<\/p>\n
62) A chairman of the Board of Governors who is not reappointed<\/p>\n
63) House Concurrent Resolution 133<\/p>\n
64) The Humphrey-Hawkins Act<\/p>\n
65) The man appointed as Fed chairman by President Carter in July 1979 to lead the fight against inflation was<\/p>\n
66) In 1979, President Carter hoped to appoint a Fed chairman who would bring down inflation, thus helping President Carter to be reelected in 1980. In this respect, President Carter was<\/p>\n
67) During World War II<\/p>\n
68) In the early post-war years, the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be<\/p>\n
69) Which chairman of the Board of Governors was not reappointed by President Truman in 1948 as a result of a conflict between the Fed and the Treasury?<\/p>\n
70) During the early 1980s, Paul Volcker argued that the Fed could not<\/p>\n
71) The public interest view of Fed motivation holds that the Fed acts in the interest of<\/p>\n
72) Which of the following appears to be evidence against the public interest view of the Fed’s motivation?<\/p>\n
73) The principal-agent view of Fed motivation predicts that the Fed acts<\/p>\n
74) The political business cycle theory predicts that<\/p>\n
75) The facts show that the political business cycle theory<\/p>\n
76) Why might Congress benefit from the Fed being self-financed?<\/p>\n
77) The issue of Fed independence is most often raised by<\/p>\n
78) The main argument in favor of Fed independence is that<\/p>\n
79) The main argument against Fed independence is that<\/p>\n
80) Apart from the United States, in countries where central bank board members serve fixed terms of office,<\/p>\n
81) Which central bank gained the power to set interest rates independent of the government in the late 1990s?<\/p>\n
82) Generally,<\/p>\n
19.2 Essay Questions<\/p>\n
1) Suppose the First National Bank pays 6.5% interest on checkable deposits and that the required reserve ratio is 10%. What is First National Bank’s effective cost of funds?<\/p>\n
2) Discuss the implications of the Fed’s lacking of a constitutional mandate.<\/p>\n
3) The text states that: “Few countries have as complex a structure for their central bank as the United States has in its Federal Reserve System.” Why does the Fed have such a complex structure?<\/p>\n
4) Under what circumstances might a private lender of last resort, such as the York Clearing House in the years before the founding of the Fed, be effective? Under what circumstances would a private lender of last resort be ineffective?<\/p>\n","protected":false},"excerpt":{"rendered":"
This paperwork of ECO 316 Week 4 Chapter 19 Organization of Central Banks shows the solutions to the following problems: 19.1 Multiple Choice Questions 1) In October 2005, President Bush nominated which of the following to be chair of the Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-174125","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/174125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=174125"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/174125\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=174125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=174125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=174125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}