Which of the following statements about the Fed is not true?
a. All nationally chartered banks must be members.
b. It controls the money supply.
c. It issues Federal Reserve Notes.
d. It serves as the bankers' bank for member banks.
e. All state-chartered banks must be members.
E
You might also like to view...
When Social Security first began, the required contribution levels were _____
a. 2 percent of a worker's pay for all income earned b. 2 percent of a worker's pay for the first $3,000 of income earned c. 1 percent of a worker's pay for the first $3,000 of income earned d. 1 percent of a worker's pay for all income earned
Which of the following is false about a liquidity trap situation: a. Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities. b. The Fed can lower both short term and long term interest rates by using quantitative easing. c. The Fed cannot easily reduce the fed funds interest rate
d. Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates.