Federal Reserve

Federal Reserve

by Kendrick Broadus

Multiple Choice

The 1st Bank of the United Staes was created to finance government debt but it did not regulate banks or money

• True

• False

Multiple Choice

Why was the 2nd bank of the United States created?

• To pay off debt

• to finance the war of 1812

Multiple Choice

Which program insures banks and keeps your money safe?

• Social Security
• TVA
• CCC
• FDIC

Multiple Choice

The _______________________ was FDR's plan to help get the economy going again and help the unemployed find jobs.

• Hoovervilles
• German race
• The New Deal
• Pearl Harbor

Multiple Choice

The Federal Reserve...

• Regulates the amount of money.

• Supervises Banks.

• Provides Financial Services.

• All of the above.

Multiple Choice

The Fed ______________ banks to ensure the soundness of the banking system.

• regulates
• closes
• opens
• runs

Multiple Choice

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

Multiple Choice

Influencing the economy by changing the reserve requirement is called:

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

Multiple Choice

What does Inflation do to the value of money?

• Makes it go up.
• Makes it go down.
• Makes it stay the same.

Multiple Choice

The primary role of the Federal Reserve Bank is to steer the economy by

• controlling the budget
• setting spending levels.
• controlling the money supply.
• loaning out money.

Multiple Choice

In a recession, the Fed would likely

• Increase the supply of money in the economy
• Decrease the supply of the money in the economy

Multiple Choice

The Federal Reserve can increase __________, which makes banks more selective when loaning out money

• Reserve Requirements
• Percentage/Earnings Ratios
• Dividends
• Blue Chip Stocks

Multiple Choice

If the economy is expanding too quickly, the Federal Reserve will institute which type of monetary policy?

• Expansionary
• Contractionary
• Equanimitous
• Whole Dollar

Multiple Choice

The central bank of the United States is the:

• Federal Reserve Banking System.
• Comptroller's Bank.
• United States National Bank.
• U.S. Treasury Bank.

Multiple Choice

If the United States is experiencing inflation, the Fed will likely

• Increase the supply of money in the economy
• Decrease the supply of money in the economy

Multiple Choice

The Fed keeps a certain amount of money out of circulation. This is referred to as the...

• Reserve requirement

• Emergency Fund

• Stockpile

• Hoard

Multiple Choice

The goal of monetary policy is to 

• sell bonds
• reduce unemployment
• seek price stability
• red and blue

Multiple Choice

The Federal Reserve uses ______ to regulate the economy.

• Monetary Policy
• Fiscal Policy

Multiple Choice

The Federal Reserve System was established in

• 1799
• 1913
• 1863
• 1881

Multiple Choice

The Federal Reserve

• is made up of 12 district banks and 25 branch banks.
• is managed by a 12-member board of directors.
• is made up of district banks that operate independently from one another.

Multiple Choice

Which part of the Fed decides when to raise or lower interest rates?

• Board of Governors
• Advisory Committee
• Chairman
• Federal Open Market Committee

Multiple Choice

The American Dollar bill is an example of

• Commodity Currency
• Representative Currency
• Fiat Currency
• Public Currency

Multiple Choice

There are _______ Regional Federal Reserve Banks, and one Federal Reserve Board of Governors.

• 50
• 4
• 12
• 52

Multiple Choice

The Fed ______________ banks to ensure the soundness of the banking system.

• regulates
• closes
• opens
• runs

Multiple Choice

Which program sets up a tax to help benefit retired people?

• FDIC
• Social Security
• TVA
• WPA

Multiple Choice

In 1929 the Great Depression started in the United States. In 1932 Franklin D. Roosevelt was elected president and he promised a "New Deal" to the American people. Which of the following BEST describes the role of the government during the New Deal?

• The government wanted people to take care of themselves and not use the government.
• The New Deal led to the government being more involved in the economy of the country.
• The government wanted people to let the government provide everything they needed.
• The New Deal led to the government being less involved in the economy of the country.

Multiple Choice

What is one way the New Deal was supposed to help the economy out of the Great Depression?

• by eliminating trading on the stock market
• by encouraging war with Germany and Japan
• by creating jobs through various new programs
• by giving people money through new bank laws

Multiple Choice

laissez-faire

• opposed to government regulation of business

• government should control major industries

• government should be eliminated

• nations should avoid trade