The Federal Reserve

"The Fed" refers to the....

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

The Federal Reserve System was established in

• 1799
• 1913
• 1863
• 1881

What does Inflation do to the value of money?

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

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.

In a recession, the Fed would likely

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

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

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

Where do Banks get the money they use to loan out to others?

• The Government
• The Federal Reserve
• Other Banks
• The Savings of Depositers

Which of the following is a job of the Federal Reserve?

• Insure the safety of deposits.
• Regulate inflation so it doesn't get out of control.
• Acts as the Governments Bank.
• All of the above.

How many regional Reserve Banks make up the Federal Reserve System?

• 12

• 6

• 22

• 50

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.