21 The Federal Reserve mutual funds c eliminate reserve mill

21. The Federal Reserve\' mutual funds (c) eliminate reserve million or less) (d) all of the above s reserve requirement power includes the authority to (a) determine are subject to reserve requirements (b) impose reserve requirements on requirements for small banks (i.e., those with deposits of $100 22. The Federal Reserve has the margin requirements (c) capital requirements for large banks (d) all of the a 23. Si power to change (a) reserve requirements (b) stock market nce 2009, Congress has given the Fed new policy tools, most notably the authority to (a) pay interest on bank reserves (b) close the stock market if trading becomes \"disruptive\" (c) require banks to give first priority in lending to consumers in their bank (d) all of the above and business firms that have deposits 24. Open market operations work efficiently and effectively because these operations (a) are conducted through dealer firms, not banks (b) involve highly liquid and highly coveted US Treasury securities (c) change bank reserves and the money supply instantly (d) all of the above 25. whe bank reserves n the Fed buys government securities in the open market (a) bank reserves increase (b) decline (c) money supply increases but bank reserves remain unchanged (d) money supply declines but bank reserves remain unchanged Banks that maintain their reserves at the Fed receive interest on these funds; the rate they receive is called the \"prime rate.\" -26. 27. To implement its sequential targeting strategy, the Fed relies on (a) daily open market operations (b) daily management of the amount of reserves provided to banks (c) adherence to a pre-designated federal funds rate target (d) all of these 28. Under the Fed\'s sequential targeting strategy, money supply growth is one of several intermediate targets that the Fed uses to assess how close it is coming to achieving its policy goals. 29. Which of the following is not an \"intermediate\" target used by the Fed in implementing monetary policy (a) gold prices (b) real long term interest rates (c) growth in consumer debt (d) federal funds rate 30. The Fed operates under a \"dual mandate\" with respect to its ultimate policy goals; one part of the mandate is to achieve full employment, price stability and economic growth; the other part of the mandate is to reduce income inequality and the national deb 31. Economists consider the Fed\'s sequential targeting strategy to be \"transparent\" because the Federal Reserve announces its strategy, policy intentions and operating targets after each FOMC meeting.

Solution

21. (a) The federal reserve\'s reserve requirement power includes the authority to which bank liabilities are subject to reserve requirements