FED

How many Federal Reserve districts are included in the Federal Reserve System?

• 6
• 8
• 10
• 12

Which monetary policy decision is meant to increase the money supply?

• Congress passes a rule to reduce personal income taxes.
• The Federal Reserve buys treasury bonds on the open market.
• Congress passes a bill to reduce regulations on monopolies.
• The Federal government borrows money from a foreign bank to cover a budget deficit.

Voting members of the FOMC include 7 members of the _______ and Presidents of the 12 district banks.

• Board of Governors
• Senate
• Financial Institution League
• President's Council

The Federal Reserve does all of the following EXCEPT

• raise taxes and determine government spending
• act as the government's bank
• regulate banking activity
• provide check-clearing services to banks

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

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.

When the Federal Reserve sends investigators to Bank of America, which job function is it doing?

• Maintaining the value of the dollar
• Regulating banks to ensure the safety of deposits and banking system
• Managing the amount of money in the economy
• Creating monetary policy

Which of the following is NOT a function that the Fed performs for the Treasury?

• collecting federal tax deposits

• setting US tax rates

• processing government checks & US savings bonds

• maintaining treasury accounts

What is the electronic payment delivery system most often used to process low-dollar recurring retail payments?

• ACH

• Fedwire

• Debit Track

• ATM

As the bank for banks, which of these is NOT a service provided by the Federal Reserve?

• check collection

• electronic transfers

• foreign currency exchange

• distributing and receiving cash and coin