Federal Reserve Quiz

What are the three main parts of the Federal Reserve?

• The Board of Governors, the reserve banks, and the Federal Reserve Act

• The Board of Governors, the Treasury Department, and the Federal Open Market Committee

• The Board of Governors, the reserve banks, and the Federal Open Market Committee

• The Board of Governors, the Federal Reserve Act, and the Federal Open Market Committee

What was one of the objectives of the Federal Reserve Act?

• To regulate the stock market

• To establish a national currency

• To help banks acquire emergency cash reserves

• To promote international trade

What is the role of the Board of Governors?

• To write regulations for commercial banks

• To conduct monetary policy

• To provide financial services

• To supervise commercial banks

What is the Federal Open Market Committee responsible for?

• Writing regulations for commercial banks

• Supervising commercial banks

• Providing financial services to banks

• Setting the nation's monetary policy

What is the target range set by the FOMC called?

• Federal funds rate

• Discount rate

• Prime rate

• Inflation rate

What is the primary responsibility of the reserve banks?

• Supervising commercial banks

• Conducting monetary policy

• Providing financial services

• Writing regulations for commercial banks

What is the role of Fed examiners?

• To write regulations for commercial banks

• To set interest rates

• To evaluate the financial health of commercial banks

• To provide financial services to banks

What is the purpose of the discount window?

• To provide short-term loans to banks

• To regulate the stock market

• To establish a national currency

• To promote international trade

What is the long-term goal of the Fed?

• To maximize employment

• To promote economic growth

• To maintain low and stable inflation

• To stabilize prices

What is the main function of the reserve banks?

• To provide financial services to banks

• To write regulations for commercial banks

• To conduct monetary policy

• To supervise commercial banks