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1.A Banks holding of deposits in accounts with the Fed, plus currency that is physically held by banks is called______

A. Discount Window

B. Reserves

C. Policy Instruments

D. Federal Reserve Banks

2. ________is a variable that is very responsive to the central banks tools and indicates a stance of monetary policy

A. Discount Window

B. Reserves

C. Policy Instruments

D. Federal Reserve Banks

3. The Federal Reserve facility at which discount loans are made to banks is______

A. Discount Window

B. Reserves

C. Policy Instruments

D. Federal Reserve Banks

4. _____ is the 12 district banks in the Federal Reserve System.

A. Discount Window

B. Reserves

C. Policy Instruments

D. Federal Reserve Banks

5. The interest rate that the Federal Reserve charges banks on discount loans?

A. Federal Funds Rate

B. Policy Instruments

C. Discount Rate

D. Discount Window

6. The interest rate on overnight loans of deposits at the Federal Reserve is____

A. Federal Funds Rate

B. Policy Instruments

C. Discount Rate

D. Discount Window

7. Companies that own one or more banks is labeled as a ________

A. Open Market Operations

B. Monetary Union

C. Bank Holding Companies

D. Federal Open Market Committee

8. _____ is the buying and selling of government securities in the open market that affect both interest rates and the number of reserves in the banking system

A. Open Market Operations

B. Monetary Union

C. Bank Holding Companies

D. Federal Open Market Committee

9. _____ is considered low and stable inflation in the economy

A. Opportunity Costs

B. Standing Lending Facility

C. Price Stability

D. Deposit Outflows

10. The amount of interest sacrificed by not holding an alternative asset is_______

A. Opportunity Costs

B. Standing Lending Facility

C. Price Stability

D. Deposit Outflows

11. ______ is a loss of deposits when depositors make withdrawals or demand payment

A. Opportunity Costs

B. Standing Lending Facility

C. Price Stability

D. Deposit Outflows

12. A lending facility in which healthy banks are allowed to borrow all the want from a central bank is________

A. Opportunity Costs

B. Standing Lending Facility

C. Price Stability

D. Deposit Outflows

13.________ is a market in which securities can be bought and sold quickly with low transaction costs

A. Competitive bidding

B. Roll Over

C. Liquid Market

D. Asset-Backed Commercial Paper

14. What is the term to renew a debt when it matures?

A. Competitive bidding

B. Roll Over

C. Liquid Market

D. Asset-Backed Commercial Paper

15. ______ is a short-term commercial paper secured by a bundle of assets, usually mortgages

A. Competitive bidding

B. Roll Over

C. Liquid Market

D. Asset-Backed Commercial Paper

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