Consider a bank with a national charter that is part of the Federal Reserve System. It will be primarily A. Regulated by the OCC B. Regulated by the...

"1. Consider a bank with a national charter that is part of the Federal Reserve System. It will be primarily A. Regulated by the OCCB. Regulated by the FedC. Regulated by the FDICD. Regulated by the National Bank of the United States2. The federal funds rate is the interest rate in the market for A. Federal government loansB. Loans of reserves between banksC. Loans from the Fed to banksD. Federal agency securities3. Which of the following are the most liquid assets on a bank balance sheet?A. Demand depositsB. ReservesC. Loans from the Federal ReserveD. Loans from the Federal Reserve4. Say that you deposited $100 in cash that you found in an abandoned house in your checking account. Which of the following would happen to the reserves in your bank, assuming a ten percent reserve requirement?A. Required reserves would increases by $100B. Actual reserves would rise by 100C. Excess reserves would increase by $ 100D. Required reserves would fail by $105. The “discount loans” account A. Is an asset to the Fed and an asset to the banking systemB. Is an asset to the Fed and a liability to the banking systemC. Is a liability to the Fed and an asset to the banking systemD. Is a liability to the Fed and a liability to the banking system6. Which of the following would most likely be true under the Lombard system?A. The Fed charges 2.5% for loans to banks but pays more than a 2.75% premium on bonds it buys from banks.B. Banks charge 3.5% on loans to each other, while the discount rate is 4%C. The federal funds rate is 3.5%, while banks charge each other 4% for loansD. The discount rate is 3.5, while banks charge each other 4% for loans7. Which one of those ratios did we say changed wery little, no matter what was going in the banking industry or the economy?A. Return on equityB. Leverage ratioC. Net interest marginD. Efficiency ratio8. An economist looks at a bank’s balance sheet, then subtracts total liabilities from total assets and divides the result by total assets. The economist is analyzing the bank’sA. Interest rate riskB. Liquidity (risk)C. Credit riskD. Leverage risk9. If we want to know if a bank will be able to handle unforeseen changes in interest rates, we calculateA. leverage riskB. Interest rate riskC. Credit riskD. The GAP ratio10. An economist looks at a bank’s balance sheet, then subtracts total liabilities from total assets and divides the result by total assets. The economist is analyzing the bank’sA. Interest rate risk B. Liquidity (risk)C. Credit riskD. Leverage risk11. 1913 is notable in monetary economics because A. That’s when the Federal Reserve was createdB. The marked the end of the Free Banking EraC. That marked the beginning of the dual Banking systemD. All of the above are true12. The Board of GovernorsA. Receives all its funding from CongressB. Is composed of seven membersC. Owns the Federal Reserve- on paper, at leastD. Has a chairman whose term coincides with that of the President of the United States13. Select all of the situations where the bank described is in violation of reserve laws.Assume in each case that the bank has $60,000 in liabilities, $1000 in US government bonds, $15,000 in checking, $700 Deposit in the Fed, and $5000 in saving accounts. Anything not given should be assumed to be $0.A. The bank has actual reserves of $1500B. The bank has cash in the amount of $825C. The bank finds that its excess reserves are a negative numberD. The bank has cash in its vaults equal to the amount of its deposit in FedE. The band keeps 6% of its demand deposits as cash.F. The entire economy has $2000 in cash, 10% of which is held by this bank and the rest is held by the publicG. None of these indicate violation of reserves laws.14. Which of the following is NOT true about tight money policy?A. We do it to fight inflationB. A higher reserve requirement ratio could be used to enact itC. Its goal is to increase demanD. The Fed sells in the open market to do so15. A famous and filthy rich chef brags in an interview that he keeps his riches in many different bank accounts across the country. “After all,” he says, “if your bank goes under, you are only guaranteed $250,000 to be paid back to you.” Why would most economists disagree with this famous chef?"