Which of the following does the Fed carefully monitor?Multiple choice question.All deposits made at a bankBank end-of-day balancesThe interest rates banks chargeBank reserves

The interest on reserve balances is the interestMultiple Choicerate banks pay the Fed to keep their money overnight.rate at which the central banks lend to the U.S. Treasury.rate the Fed pays banks for any money they deposit on an overnight basis.rate at which banks lend to the public.

Multiple Choice QuestionThe check clearing role of the Federal Reserve allows Blank______. Multiple choice question.investment bankers to offer IPOsbanks to settle the check payments between banks in different parts of the countrymember banks to create loans using checking accounts as collateralmember banks to offer free checking for better customers

______ are listed on bank statements in the order in which the bank processes them and increase the cash balance.Multiple choice question.DepositsNSF checksService chargesATM withdrawals

1. The government agency that oversees the banking system and is responsible for theconduct of monetary policy in the United States isA) the Federal Reserve System.B) the United States Treasury.C) the U.S. Gold Commission.D) the House of Representatives.2. Individuals that lend funds to a bank by opening a checking account are calledA) policyholders.B) partners.C) depositors.D) debt holders.3. Total reserves are the sum of ________ and ________.A) excess reserves; borrowed reservesB) required reserves; currency in circulationC) vault cash; excess reservesD) excess reserves; required reserves4. Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%,and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causesthe M1 money multiplier to ________, everything else held constant.A) increase from 0.73 to 0.78B) decrease from 0.73 to 0.61C) increase from 1.54 to 1.67D) decrease from 1.67 to 1.545. Suppose that from a new checkable deposit, First National Bank holds two million dollarsin vault cash, one million dollars in required reserves, and faces a required reserve ratio of tenpercent. Given this information, we can say First National Bank has ________ million dollarsin excess reserves.A) oneB) twoC) nineD) ten6. If the required reserve ratio is one-third, currency in circulation is $300 billion, checkabledeposits are $900 billion, and there is no excess reserve, then the M1 money multiplier isA) 2.5.B) 2.8.C) 2.0.D) 0.67.7. The interest rate the Fed charges banks borrowing from the Fed is theA) federal funds rate.B) Treasury bill rate.C) discount rate.D) prime rate.8. The monetary base minus currency in circulation equalsA) reserves.B) the borrowed base.C) the nonborrowed base.D) discount loans.

Bank reserves includeA) deposits at the Fed and short-term treasury securities.B) vault cash and short-term Treasury securities.C) vault cash and deposits at the Fed.D) deposits at other banks and deposits at the Fed