The Federal Reserve

What is the Federal Reserve?

• The United State's National Bank.

• Virginia's National Bank.

• A credit union.

• The United State's national assembly line.

Which political figure established the Federal Reserve system?

• Congress

• Woodrow Wilson

• George Washington

• Alexander Hamilton

How many major categories are the Federal Reserve separated into?

• 20

• 12

• 5

• 4

What is the main job of the Federal Reserve system?

• Making laws.

• Ensuring life, liberty, and the pursuit of happiness.

• Ensuring the nation's economic stability.

• Maintaining the nation's monetary stability.

What is the FOMC?

• A Federal Reserve agency that controls all banks and prevents consumer choice.

• A Federal Reserve agency that specializes in monetary policy making.

• A Federal Reserve agency specializing in ensuring the nation's economic stability.

• Making legislation, declaring war, and interacting in foreign trade.

What are interest rates?

• The percentage of money added to an account balance the longer that money is in the bank. If lowered, people may want to spend loans on home improvements.

• The amount of money deposited into the bank. If lowered, people are unlikely to loan money for self spending.

• The amount of money government collects for taxes.

• The money saved for later in life, causing an increase in economic stability later on.

How many members of the FOMC are from the Board of Governors?

• 10

• 7

• 0

• 5

Which of the following are NOT examples of responsibilities of the United States Federal Reserve?

• Maintaining stability of the United States economy.

• Lowering costs of business sales, resulting in maintaining equilibrium prices.

• Maintaining the monetary value of the US. Dollar

• Granting money to the state and local governments on request.

• Making sure the banks are stable, declaring laws, and war.

What year was the idea of the Federal Reserve thought of?

• 1913, State of the Union Address.

• 1913, Congress.

• 1913, The U.S Supreme Court

• 1913, The General Assembly of Virginia.

What dollar bill is a Federal Reserve Note?

• $10

• $50

• $100

• $500