Introduction to Finance

(LO 4.4)
Describe what is meant by quantitative easing by the Fed.
 14. 
(LO 4.4)
Reserve Banks have at times been described as bankers’ 
banks because of their lending powers. What is meant by this statement?
 15. 
(LO 4.4)
Describe the two “targets” that the Fed can use when 
establishing monetary policy. Which target has the Fed focused on in 
recent years?
 16. 
(LO 4.5) 
Explain the usual procedures for examining national 
banks. How does this process diff er from the examination of member 
banks of the Federal Reserve System holding state charters?
 17. 
(LO 4.5)
What federal agencies are responsible for supervising 
and regulating depository institutions that are not commercial banks?
 18. 
(LO 4.5)
Describe the objectives of the Consumer Credit Pro-
tection Act of 1968. What is the Truth in Lending section of the act? 
What is Regulation Z?
 19. 
(LO 4.6)
Explain the process by which the Federal Reserve 
Banks provide the economy with currency and coin.
 20. 
(LO 4.6)
Describe how a check drawn on a commercial bank but 
deposited for collection in another bank in a distant city might be 
cleared through the facilities of the Federal Reserve System.
 21. 
(LO 4.6)
What is the special role of the Federal Reserve Inter-
district Settlement Fund in the check-clearance process?
 22. 
(LO 4.6) 
In what way do the Reserve Banks serve as fi scal agents 
for the U.S. government?
 23. 
(LO 4.7)
Briefl y describe and compare the central banks in the 
United Kingdom, Japan, and Economic Monetary Union.

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Problems