Facts about the Federal Reserve System In the United States, monetary authority
ID: 1216895 • Letter: F
Question
Facts about the Federal Reserve System In the United States, monetary authority is ultimately held by the Board of Governors of the Federal Reserve System How many years does the term of a Federal Reserve Board chairperson last? 7 9 5 4 The following graph shows the composition of the Federal Reserve's assets from 2007 to 2011. According to the graph, which of the following statements are correct. Check all that apply. In late 2009, the Fed shifted into long-term Treasury bills. The Fed delayed increasing lending to financial institutions until 2010. In 2010, Federal agency debt was reduced to 10% of the Fed's assets. In 2009, the Fed stopped purchasing corporate bonds. In late 2009, the Fed increased its purchases of Federal agency debt.Explanation / Answer
8 solution: The term of the Federal Reserve Board Chairperson lasts for 4 years. Note that the person can be reappointed after term is over.
Related to Graph:
1 is correct as long term treasury bills as shown by dark brown part started increasing in later part of 2009.
2 is incorrect as on the contrary Fed was lending more before.
3 is incorrect as Federal agency debt was increasing and more than 10% of assets in 2010.
4 is incorrect as no information on corporate bonds is provided.
5 is correct as is clear from trend in green part.
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