The Fed rarely changes Reserve Requirements in its conduct of monetary policy.

A. True

B. False

The correct answer is A

Which of the following is the most powerful instrument of monetary policy?

A. open market operations

B. the discount rate

C. reserve requirements

D. the accordion

The correct answer is A

In 2003 if a bank held $5.0 million in transaction deposits what percentage would the bank be required to keep on reserve?

A. 0%

B. 3%

C. 5%

D. 10%

The correct answer is A

Which Federal Reserve Bank conducts the Fed System's foreign exchange actions?

A. Cleveland

B. Dallas

C. New York

D. Minneapolis

The correct answer is C