Federal Reserve basics

"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

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.

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

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

What does Inflation do to the value of money?

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

The Federal Reserve is called "The Bankers Bank" because it supervises banks.

• False
• True

What is the name of our nation's central bank?

• The Federal Reserve
• The United States National Bank
• The National Bank of the United States
• Bank of America

How do Private Financial Institutions make a profit?

• The Government pays them
• Charging interest on loans

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.

What are the two tools the FOMC will use to determine monetary policy?

• Taxing and spending

• Interest rates and reserve requirements

• legislation and enforcement

• interest rate and tax rates