Which banks have the option of joining the Federal Reserve System?State Chartered BanksDistrict BanksNationally Chartered BanksBranch Banks

Which of the following financial services does theFederal Reserve provide for commercial banks?I. clearing checksII. holding reservesIII. making loansa. I onlyb. II onlyc. III onlyd. I and IIe. I, II, and III

Which of these financial institutions is least like the others?Group of answer choicescommercial or private banksinvestment banksforeign bankscredit unionssavings and loans associations

1. The government agency that oversees the banking system and is responsible for theconduct of monetary policy in the United States isA) the Federal Reserve System.B) the United States Treasury.C) the U.S. Gold Commission.D) the House of Representatives.2. Individuals that lend funds to a bank by opening a checking account are calledA) policyholders.B) partners.C) depositors.D) debt holders.3. Total reserves are the sum of ________ and ________.A) excess reserves; borrowed reservesB) required reserves; currency in circulationC) vault cash; excess reservesD) excess reserves; required reserves4. Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%,and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causesthe M1 money multiplier to ________, everything else held constant.A) increase from 0.73 to 0.78B) decrease from 0.73 to 0.61C) increase from 1.54 to 1.67D) decrease from 1.67 to 1.545. Suppose that from a new checkable deposit, First National Bank holds two million dollarsin vault cash, one million dollars in required reserves, and faces a required reserve ratio of tenpercent. Given this information, we can say First National Bank has ________ million dollarsin excess reserves.A) oneB) twoC) nineD) ten6. If the required reserve ratio is one-third, currency in circulation is $300 billion, checkabledeposits are $900 billion, and there is no excess reserve, then the M1 money multiplier isA) 2.5.B) 2.8.C) 2.0.D) 0.67.7. The interest rate the Fed charges banks borrowing from the Fed is theA) federal funds rate.B) Treasury bill rate.C) discount rate.D) prime rate.8. The monetary base minus currency in circulation equalsA) reserves.B) the borrowed base.C) the nonborrowed base.D) discount loans.

Who runs the regional Federal Reserve Banks in each district?Select the correct answer below:the US federal governmentthe state governmentsdomestic and foreign investors through the purchase of stocks and bondsthe member commercial banks of the district

A commercial bank can receive a loan from another commercial bank in the Group of answer choicesFederal funds marketbank loan marketFed marketDiscount market