The Federal Reserve

The Federal Reserve

What is the Federal Reserve?

Multiple Choice

What is the Federal Reserve?

• The Central Bank of the US

• The extra money the government has for a rainy day

• The government agency that investigates crime

• The government's bank account

The Structure of the Fed

Multiple Choice

Where is the Board of Governors located?

• New York City
• Los Angeles
• Chicago
• Washington, D.C.

Multiple Choice

How many district banks are there?

• 50

• 25

• 12

• 1

Multiple Choice

Which Federal Reserve District do we live in?

• Boston - District 1

• New York - District 2

• Philadelphia - District 3

• Cleveland - District 4

Open Ended

What states are part of our Federal Reserve District?

Federal Open Market Committee

Multiple Choice

How many Federal Reserve District Bank presidents vote as part of the Federal Open Market Committee?

• 12

• 7
• 5
• 4

Multiple Choice

How many governors make up the Board of Governors?

• 12

• 7
• 5
• 4

Multiple Choice

What Federal Reserve District Bank president is a permanent voting member of the Federal Open Market Committee?

• Boston

• New York

• Philadelphia

• San Fransisco

Multiple Choice

How many times a year does the Federal Open Market Committee (FOMC) meet?

• 5

• 7

• 8

• 12

The Next Two Slides Show the Five Functions of the Federal Reserve

The Next Two Slides Show the Five Functions of the Federal Reserve

Match

Match the Functions of the Federal Reserve with its Description

• Monetary Policy

• Payment Services

• Supervision and Regulation

• Financial System Stability

• Consumer Protection and Community Development

Using tools to control the amount of money and credit in the economy

Overseeing checks and electronic payment

Overseeing Banks

Overseeing the financial system

Overseeing consumer laws

• Using tools to control the amount of money and credit in the economy

• Overseeing checks and electronic payment

• Overseeing Banks

• Overseeing the financial system

• Overseeing consumer laws

Multiple Choice

When the Fed pays interest on reserve balances, which of its five functions is it using?

• Monetary Policy

• Payment Services

• Supervision and Regulation

• Financial System Stability

• Community Protection and Development

Multiple Choice

When the Fed audits a member bank, which of its five functions is it using?

• Monetary Policy

• Payment Services

• Supervision and Regulation

• Financial System Stability

• Community Protection and Development

The Fed's Dual Mandate

Multiple Select

What is the Fed's goal when setting policy? (It's the Dual Mandate)

• Strong Stock Market

• Low Taxes

• Full Employment

• Price Stability

Multiple Choice

What do banks need if they want to borrow from the Fed?

• Collateral
• A high stock price

• Over 2 million customers

• A high number of bonds

Multiple Choice

What does it mean when the Fed is called the "lender of last resort?"

• It means the Fed only provides loans to non-profit organizations
• It means the Fed only lends to the wealthiest individuals
• It means the Fed never provides loans to financial institutions
• It provides emergency loans to financial institutions during times of financial crisis.

Multiple Select

Where does the Fed gets its funding? (Select all that are true)

• Congress

• Interest on securities

• Fees on services

• Taxes