Federal Reserve

"The Fed" refers to the....

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

What does Inflation do to the value of money?

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

Does increasing the money supply cause inflation or deflation?

• Inflation
• Deflation

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.

All are roles of the Federal Reserve except?

• Regulate the interest rates on home mortages

• Control the interest rate that banks borrow money at

• Control the amount of money in circulation

• Regulate how much money banks must keep on hand

The Federal Reserve System is-----

• The federal government's bank

• Responsible for legislative purchases

• the federal government's tax collector

• Accountable for legislative actions

What is the central bank of the United States called?

• National Savings and Loan

• National Credit Union

• Federal Reserve

• Federal Bank

A goal of the Federal Reserve System is to-

• Provide tax money to the government

• Set the tax rate

• Keep the economy stable

• Maintain high interest rates

The government issues coins and currency to make the exchange of goods and services easy. People accept U.S. coins and currency in exchange for goods and services because they have:

• No other choice

• Confidence in the U.S. government

• Been taught that this is the law and the only way to do it

• No way to regulate "barter and trade"

The attached pictures are all examples of...

• Coins

• Federal Reserve Notes

• Legal contracts

• Government issued checks