Economics 470/570 [ADDS PAGE NUMBERS FROM MISHKIN’S TEXT] Definitions
Winter 2005
Review Question Set for Week #2
FOMC [341]
FAC [345]
Discount window [359]
Discount rate [359]
Member bank [340]
Federal Funds rate [393]
Short Answer
1. What are the three types of financial intermediaries? What types of firms are in each category? [34-37]
2. Briefly describe the major functions of Federal Reserve district banks. [339]
3. Who is on the FOMC? What does the FOMC do? [341-344]
Essay
1. What are the reasons for regulating financial markets? Discuss the types of regulations that have been imposed on financial markets. [37-40]
2. Describe the structure of Federal Reserve districts and Federal Reserve banks. [336-340]
3. Describe the structure and function of the Board of Governors of the Federal Reserve System. [340-341]
4. How has the power structure of the Federal Reserve System shifted over time? [344-346]
5. How independent is the Fed? What factors contribute to independence? What factors work against independence? Discuss arguments for and against the independence of the Fed (we will discuss this part of the question next class). [346-349, 352-354]
