Describe the functions of the Federal Reserve System.
What will be an ideal response?
The Fed's functions include (1) controlling the money supply, (2) clearing checks, (3) supervising and regulating banks, (4) maintaining and circulating currency, (5) protecting consumers, and (6) maintaining federal government checking accounts and gold reserves.
You might also like to view...
The above figures show the market for HD televisions. Blu-ray players can be used to play HD movies. If the price of Blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.
Suppose the desired reserve ratio is 20 percent and there is no currency drain. Then a $1 increase in the monetary base leads to the banking system to increase the quantity of money by
A) $0.02. B) $4. C) $5. D) $20. E) $2.
Refer to the Article Summary. The convertible peso (CUC) is worth 25 times the peso (CUP), yet Cuban officials have for years treated the two currencies as being of equal value. This indicates that the peso (CUP) is ________ compared to the convertible peso (CUC), and would need to be ________ for the two currencies to reach the market equilibrium exchange rate.
A) overvalued; revalued B) undervalued; devalued C) overvalued; devalued D) undervalued; revalued
Capital ________ are American purchases of foreign assets, and capital ________ are foreign purchases of American assets
A) inflows; outflows B) inflows; inflows C) outflows; outflows D) outflows; inflows