1. By definition, excess reserves (of banks and the banking system) cannot be used to expand their lending.

True

False

2. In setting targets, the Fed's most important (and prominently reported) target today is the money supply growth range.

True

False

3. The President of the New York Fed is an automatic, permanent member of the Federal Advisory Council

True

False

4. The primary benefit of money is that its use reduces transactions costs.

True

False