Graded Federal Reserve Quiz

The goals of monetary policy do not include the promotion of

• maximum employment

• stable prices

• moderate long-term interest rates

• low taxes

Which Federal Reserve Bank always has voting rights on the FOMC?

• Dallas

• Kansas City

• Chicago

• New York

Federal Reserve Board of Governors members serve _________ year terms to help insulate them from political influence.

• 7

• 14

• 25

• lifetime

Which of these is not a monetary policy tool?

• discount rate

• balance accounts

• open market operations

• reserve requirement

Monetary policy refers to what the Federal Reserve does to influence the amount of ___________ and ____________ in the U.S. economy.

• interest and debt

• currency and gold reserves

• money and credit

• taxes and revenue

FOMC, the policy making body of the Federal Reserve, stands for

• Fiscal Operating Money Committee

• Federal Open Market Operations

• Financial Options Management Corporation

• Final Organized Money Company

Inflation is a sustained increase in the general level of _____________.

• prices

• accounts

• income

• profit

Federal Reserve Board of Governors members are appointed by the __________ and confirmed by the _________.

• treasury - congress

• public - House of Representatives

• president - Senate

• Federal Reserve presidents - treasury

How many districts make up the Federal Reserve system?

• 10

• 12

• 15

• 18

Which of these is not a function of the Federal Reserve?

• provide financial services to banks

• manage the federal deficit

• supervise and regulate banks

• conduct monetary policy