Which of the following statements about the Federal Reserve (Fed) is (are) correct?
(x)The Federal Reserve system has twelve regional Federal Reserve Banks and each regional bank plays a role in regulating banks in its district as well as ensuring the health of the banking system.
(y)Although the Fed is known as the lender of last resort, it will only lend to banks so if a large firm in the chemical industry is denied a loan at the local bank, the firm cannot apply for a loan from the Fed
(z)The Federal Reserve has 14 regional banks. The Board of Governors has 7 members who serve 12-year terms.
A.(x), (y) and (z)B.(x) and (y), onlyC. (x) and (z), onlyD.(y) and (z), onlyE.(x) only
According to the textbook, which of the following statements about the Federal Open Market Committee (FOMC) (are) correct?
(x)At the Federal Reserve, the nation’s monetary policy is made by the FOMC, which meets about every six weeks to discuss changes in the economy.
(y)At any given time, the voting members of the FOMC include five of the presidents of the regional Federal Reserve banks, the president of the Federal Reserve Bank of New York and the seven members of the Board of Governors.
(z)All regional Fed presidents attend the FOMC meetings, but only five get to vote