Mod 27

All of the following are responsibilities of the Fed EXCEPT:

• control the monetary base.

• set the reserve requirement.

• oversee and regulate the banking system.

• set the discount rate.

• mint bills and coins.

The major tools of monetary policy available to the Federal Reserve System include:

• reserve requirements, margin regulations, and moral suasion.

• reserve requirements, open-market operations, and the discount rate.

• open-market operations, margin regulations, and moral suasion.

• the discount rate, margin regulations, and moral suasion.

• tax collections, open-market operations and the discount rate.

The tool of monetary policy that involves the Fed's buying and selling of government bonds is:

• moral suasion.

• reserve requirements.

• the discount rate.

• open-market operations.

• setting government transfer payments.

The tools of conducting monetary policy include:

• changes in the reserve requirement.

• changes in the prime rate.

• open market purchases of corporate stock.

• changing tax rates.

• regulating the New York Stock Exchange.

To decrease the money supply, the central bank could:

• lower the discount rate.

• make open-market sales.

• increase the discount rate.

• lower the federal funds rate spread.

• increase the 30-year mortgage rate.