1. Ceteris paribus, if the Fed was targeting the quantity of money supplied and money demand dropped the Fed would likely ______________. If the Fed was instead targeting interest rates and money demand dropped the Fed would likely _______________.

The Fed changes reserve requirements from 10% to 7%, thereby creating $900 million in excess reserves. The total change in deposits (with no drains) would be

The fed funds rate is the rate that

A bank has $770 million in checkable deposits. The bank has $85 million in reserves. The banks required reserves are _____________ and its excess reserves are _____________.

The major asset of the Federal Reserve is

About 40% of all U.S. banks are members of the Federal Reserve System.

Federal Reserve Board members are appointed by the U.S. President and confirmed by the Senate for a non-renewable 14 year term.

The seven members of the Board of Governors of the Federal Reserve System serve 14 year nonrenewable terms. Each Board member is appointed by the President and confirmed by the Senate.

Four seats on the FOMC are allocated to Federal Reserve Bank presidents on an annual rotating basis.

An increase in Treasury securities held by the Fed leads to a decrease in the money supply.