Federal Reserve Quiz

The central bank of the United States is the Federal Reserve. When was the Federal Reserve created?

• 1900

• 1913

• 1920

• 1930

What is the main decision-making body of the Federal Reserve?

• Board of Governors

• Regional Federal Reserve Banks

• Financial Institutions

• Government Oversight

What is the main purpose of the Federal Reserve?

• To stabilize the economy

• To regulate financial institutions

• To prevent inflation

• To provide emergency funding

What is monetary policy?

• Controlling the supply of money in the economy

• Regulating financial institutions

• Setting interest rates

• Buying and selling government bonds

What is one of the roles of the Federal Reserve in regulating financial institutions?

• Ensuring stable economic growth

• Preventing financial panics

• Setting interest rates

• Making sure they follow rules and stay stable

What is the Federal Reserve's role during times of crisis?

• To stabilize the economy

• To provide emergency funding

• To prevent inflation

• To regulate financial institutions

What is the target of the federal funds rate?

• The interest rate charged by banks for overnight loans

• The interest rate set by the Federal Reserve

• The interest rate for government bonds

• The interest rate for mortgage loans

How does the Federal Reserve lower interest rates?

• By injecting more money into the economy

• By selling bonds

• By regulating financial institutions

• By setting the federal funds rate

What can happen if interest rates are lowered too much or too quickly?

• Inflation

• Economic growth

• Stable economy

• Financial panics