MGT411 Book MCQs 2nd Edition with Answers

MGT411 McQs from Money, Banking and Financial Markets, 2/e 100% sure Answers(P)

Quiz # 31

Q1. The three branches of the Federal Reserve System include each of the following EXCEPT the:

1. Board of Governors.
2. Federal Open Market Committee.
3. Comptroller of the Currency.
4. twelve regional Reserve Banks.

Correct answer: Comptroller of the Currency.

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LOD: 1

Q2. The Federal Reserve was created in:

1. 1939.
2. 1919.
3. 1929.
4. 1913.

Correct answer: 1913.

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LOD: 1

Q3. Currently the requirement of holding a non-interest earning reserve account at the Fed must be met by:

1. only nationally chartered banks.
2. only member banks.
3. member banks and non-member banks over $100 million in assets.
4. all banks, member or not.

Correct answer: all banks, member or not.

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LOD: 1

Q4. The Federal Reserve Districts are a product of:

1. economic and political forces as well as population distribution.
2. solely economic forces that existed at the time of the Federal Reserve Act.
3. economic and political forces that existed at the time the Fed was formed.
4. solely population distribution at the time of the Federal Reserve Act.

Correct answer: economic and political forces as well as population distribution.

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LOD: 2

Q5. In its role as the government's bank, the Federal Reserve performs all of the following services EXCEPT:

1. issue new currency.
2. manage U.S. Treasury borrowings.
3. maintain the U.S. Treasury's bank account.
4. provide discount loans.

Correct answer: provide discount loans.

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LOD: 2

Q6. Open market operations are conducted at the ____ Fed.

1. New York
2. Richmond
3. Chicago
4. San Francisco

Correct answer: New York

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LOD: 2

Q7. Buying and selling U.S. Treasury Securities for the Fed's own portfolio is called:

1. managing the Treasury account.
2. discount buying.
3. open market operations.
4. reserve adjustment.

Correct answer: open market operations.

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LOD: 1

Q8. The largest Federal Reserve District geographically is serviced by:

1. the Reserve Bank in New York.
2. the Reserve Bank in Chicago.