Federal Reserve System Quiz

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

• The President

• The Secretary of the Treasury

• The Chairman of the Federal Reserve

• The Senate

What is the role of Federal Reserve Banks?

• Implement Federal Reserve policies

• Provide services to member banks and federal government agencies

• Both A and B

• None of the above

Which banks are included as member banks of the Federal Reserve System?

• Only nationally chartered banks

• Only state-chartered banks

• Both nationally chartered banks and many state-chartered banks

• Only privately owned banks

What is the role of the Federal Open Market Committee?

• Create monetary policy

• Manage foreign reserves

• Implement fiscal policy

• Regulate bank holding companies

What are foreign reserves?

• Deposits of foreign currencies held by commercial banks

• Deposits of domestic currencies held by commercial banks

• Deposits of foreign currencies held by central banks

• Deposits of domestic currencies held by central banks

What is the purpose of monetary policy?

• Stabilize stock markets

• Control inflation and unemployment

• Regulate foreign exchange rates

• Manage interest rates and the money supply

What are bank holding companies?

• Companies that control one or more banks

• Companies that provide services to member banks

• Companies that regulate the Federal Reserve

• Companies that manage foreign reserves

What is the role of the Fed as a fiscal agent?

• Implement monetary policy

• Sell, redeem, and pay interest on government securities

• Regulate bank holding companies

• Manage foreign reserves

What is the process of check clearing?

• Removing money from the payer's account and delivering it to the payee's account

• Withdrawing money from a bank account

• Depositing money into a bank account

• Transferring money between payers' and payees' accounts

What are ACH transfers?

• Transfers between payers' and payees' accounts carried out through credit card transactions

• Transfers between payers' and payees' accounts carried out through wire transfers

• Transfers between payers' and payees' accounts carried out without the use of checks

• Transfers between payers' and payees' accounts carried out with the use of checks