Federal Reserve System Quiz

When was the Federal Reserve System established?

• 1907

• 1913

• 1930

• 1920

What is the main goal of the Federal Reserve System?

• Ensuring price stability and maximum employment

• Regulating member banks

• Providing financial services

• Maintaining financial system stability

How many regional Federal Reserve Banks are there?

• 5

• 7

• 10

• 12

Who appoints the members of the Board of Governors of the Federal Reserve?

• The President

• The U.S. Senate

• The Federal Reserve Banks

• The U.S. Treasury

What is the role of the Federal Open Market Committee (FOMC)?

• Regulating member banks

• Conducting national monetary policy

• Providing financial services

• Maintaining financial system stability

What is the primary source of income for the Federal Reserve?

• Fees for services provided to depository institutions

• Interest charges on U.S. government securities

• Interest on loans to depository institutions

• Interest on foreign currency investments

What is the purpose of the Fedwire system?

• To regulate member banks

• To move trillions of dollars daily between banks

• To monitor economic changes

• To provide financial services

What is the Federal Reserve's role in controlling the money supply?

• Printing money

• Setting interest rates

• Buying and selling government securities

• Implementing monetary policy

Who owns the Federal Reserve System?

• The Board of Governors

• The Federal Reserve Banks

• The Bureau of Engraving and Printing

• The U.S. government

How does the Federal Reserve set interest rates?

• By buying and selling government securities

• By regulating member banks

• By printing money

• By setting the rate for its Overnight Reverse Repurchase Agreement Facility