Money and Banking Quiz

Why was the Federal Reserve System created?

• To serve as the nation's first true central bank

• All nations are required to join

• All state-charted banks were eligible to join

• Bank's bank is the Federal Reserve

Who appoints the managers of the Fed?

• The First lady

• The people

• The Vice President

• The President

Who has to confirm after the President appoints the managers of the fed?

• The Supreme Court Justice

• The Senate

• No one has to confirm

• The people

What is the currency of the US called?

• Coins

• Representative money

• Fiat money

• Gold

The Federal Reserve is the bank's ___________

• lending institution.

• hospital

• government

• bank.

The currency the Federal Reserve puts into circulation is called ____________________________ or is paper money.

• Federal Paper

• Federal Reserved Notes

• Federal Coins

• Federal Cash

To become a member of the Fed

• Banks buy shares of stock

• Banks ask the government permission

• Banks have to have a minimum of 1000 branches around the country

• Banks have to have at least 1 million customers

Individual member banks who join the Fed are the owners

• True

• False

Federal open market committee is in charge of the money supply

• True

• False

This is the organization which directs and controls the activities of the FED. (The folks that control everything.)

• The president

• The cabinet

• The Board of Governors

• Congress