Monitoring FOMC statements made after a meeting for hints as to what level the Federal Reserve is anticipating moving the Fed funds rate is referred to as bias.
A) True
B) False
A) True
Increased required reserves mandated by the Federal Reserve will tend to decrease interest rates in the money market.
A) True
B) False
B) False
If the Federal Reserve Board elects to raise reserve requirements, depository institutions will be willing to make more loans at lower interest rates.
A) True
B) False
B) False
The Federal Reserve is very cautious about changing the direction of interest rates, or the level of interest rates, even when it appears it will be beneficial.
A) True
B) False
A) True
The Term Auction Facility conducts auctions weekly and these auctions are open to all financial institutions that would be eligible for primary credit from the Federal Reserve.
A) True
B) False
B) False
In the early 1980s the unemployment rate in the United States reached its highest levels since the Great Depression, above:
B) 10%.
Suppose the banking system's nonborrowed reserves total $130 billion with total legal reserves standing at $175 billion. What must borrowed reserves be?
D) $45 billion
Which of the following was a liquidity facility provided by the Federal Reserve during the Credit Crisis of 2007-2009?
E) A and B only
Borrowing at the Federal Reserve discount window is:
E) none of the above
Frictional unemployment, which arises from temporary unemployment of job seekers who are either new to the workforce or who are in transition from one job to another, is also referred to as: