Federal Reserve Bank of Boston Economic Quiz
1. Who carries out monetary policy in the United States?
The legislative and/or the executive branches of the government
The Federal Reserve System
The Federal Reserve System and the executive branch of the government
None of the above
2. How may times per year does the Federal Open Market Committee (FOMC) meet to direct Monetary Policy?
3. What is the primary instrument used to carry out monetary policy?
Open market operations
Changes in reserve requirements
Changes in the discount rate
Government expenditures and taxes
4. How is the Federal Funds Rate used to influence monetary policy?
A target rate is sent and used as a gauge to buy and sell government securities.
It is not used to influence monetary policy
A target rate is set and used to influence bank lending rates
It is used by adjusting quickly to market conditions
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Economic quiz written by: Delia Sawhney - April 29, 2002
Views expressed in the economic quiz are those of the individual author.