2) The Secretary of the Treasury A) serves as Chairman of the Board of Governors

Question

2) The Secretary of the Treasury

A) serves as Chairman of the Board of Governors.

B) serves as a member of the Board of Governors.

C) serves as a member of the Federal Open Market Committee.

D) does not serve on the Board of Governors.

7) Open market operations are

A) seldom used by the Federal Reserve because they have such a large impact on bank Reserves.

B) seldom used by the Federal Reserve because they have little impact on bank reserves.

C) used frequently by the Federal Reserve but not as often as changes in the discount rate.

D) the primary method used by the Federal Reserve to alter bank reserves.

9) In 1913, Congress and the President envisioned that the Fed would have broad control of

A) open market operations.                                                               B) discount loans.

C) most aspects of the money supply.                                             D) most aspects of money and the banking system

Explanation / Answer

Q2. The board of Governors of the Federal Reserve System consists of seven members. Five members are appointed by President. Two other members are US Secreatry of Treasury and the comptroller of the currency. These two are considered as ex-officio members as they are members based on office they hold.

Hence, the correct answer is option (B).

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