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Which of the following factors does not reduce the Federal Reserve's control of the money supply?
The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.
In The Recent Past The Federal Reserve Has Set The Discount Rate?
above the federal funds rate
In the event of a national emergency the Federal Reserve System can do which three things?
-expand credit -set reserve limits -manage the money supply
The percentage of deposits that banks must set aside either in their vaults or in their Federal Reserve district bank?
Reserves
Does the Federal Reserve print money?
Yes the federal Reserve, created in 1913, prints all US currency and coins. Every US dollar in circulation is printed as federal reserve notes which can be seen at the top of every US dollar. The US Treasury is obligated to print money at the demand of the Federal Reserve. When the government needs money, it gives US Treasury bonds to the Federal Reserve and in return, the federal reserve sells the government federal reserve notes with interest. How does the federal Reserve get these Federal Reserve notes? The US Treasury prints them out for the Federal Reserve electronically. These US Treasury bonds are than sold to very wealthy individuals and privant banks.According to the US code-section 411," Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose ofmaking advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose,are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other publicdues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank." (http://codes.lp.findlaw.com/uscode/12/3/XII/411)
What is the function of the Federal Reserve Bank?
The function of the Federal Reserve Bank is responsible for carrying out monetary policy as set by the Federal Open Market Committee. They are 12 Reserve banks
Which of the following factors does not reduce the Federal Reserve's control of the money supply?
The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.
In the recent past the Federal Reserve has set the discount rate .?
above the federal funds rate
In The Recent Past The Federal Reserve Has Set The Discount Rate?
above the federal funds rate
Purpose of the legal reserve?
The legal reserve is designated as the set amount of federal deposits utilized as safe and secure assets created to meet liquidity requirements for the U.S. Federal Bank.
Is the preferential cup the interest that the federal reserve charges the bank member when they ask for a loan?
No, the preferential cup is not a term associated with the Federal Reserve's lending practices. The interest rate that the Federal Reserve charges member banks for loans is known as the "discount rate." This rate is set by the Federal Reserve and can influence overall economic activity by affecting the cost of borrowing for banks.
What are the responsibilty of federal reserve system?
The Federal Reserve is the central banking system of the United States. It was created in the year 1913. Ben Bernanke is the chairman of the Federal Reserve. He has been the chairman since 2006. Before him, Alan Greenspan was the chairman of the Federal Reserve. The United States Government owns the Federal Reserve. They set policies like: 1. Minimum Deposit Rates 2. Loan Rates 3. Cash Reserve Ratio and other regulatory ratios 4. etc
In the event of a national emergency the Federal Reserve System can do which three things?
-expand credit -set reserve limits -manage the money supply
Member banks are constituent of?
Member banks are constituents of the Federal Reserve System in the United States. They are financial institutions that hold stock in one of the 12 Federal Reserve Banks and are subject to the regulations and policies set by the Federal Reserve. These banks play a crucial role in the implementation of monetary policy and the stability of the financial system.
Are banks permitted to lend all their reserves?
No. They can lend only a % of their total cash reserves. It depends on the Cash Reserve Ratio and Liquidity Ratios set by the Central Banks (Reserve Bank, Federal Reserve etc)
Why are there only nine out of twelve 2 bills in the new 2011 federal reserve set?
The federal reserve put out a 9 note $2 bill package. They only printed 2,000 copies and ruled that there would only be allowed 3 perhouse hold. The 9 notes were designed to represent the 9 federal reserve banks that are in the US.
What statement about federal reserve not true?
A statement that is not true about the Federal Reserve is that it is a private bank that operates independently of the U.S. government. In reality, while the Federal Reserve has some independence in its operations, it is a central banking system created by Congress and is subject to oversight and regulation by the government. Additionally, its decisions are influenced by economic conditions and policies set by the government.
