Which group votes on the open-market operations that are used to control the U.S. money supply and interest rates?
a. The Federal Reserve System.
b. The 12 Federal Reserve Banks.
c. The Board of Governors of the Federal Reserve System.
d. The Federal Open Market Committee (FOMC).
5. An important reason why members of the Federal Reserve’s Board of Governors are each given extremely long, 14-year terms is to:
a. Insulate members from political pressures that could result in inflation.
b. Help older members avoid job searches before retiring.
c. Attract younger people with lots of time left in their careers.
d. Avoid the trouble of constantly having to deal with new members.
6. Which of the following is not a function of the Fed?
a. Setting reserve requirements for banks.
b. Advising Congress on fiscal policy.
c. Regulating the supply of money.
d. Serving as a lender of last resort.
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