Federal Reserve System Quiz

What is the main objective of the Federal Reserve Act in 1913?

• To promote international trade

• To control the national debt

• To regulate the stock market

• To help banks acquire emergency cash reserves

How many members are there in the Board of Governors?

• 5 members

• 7 members

• 9 members

• 12 members

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

• Supervising commercial banks

• Issuing currency

• Regulating the stock market

• Conducting monetary policy

What is the interest rate on overnight loans between banks called?

• Prime rate

• LIBOR

• Federal funds rate

• Discount rate

What is the main responsibility of the reserve banks in the Federal Reserve System?

• Regulating the insurance industry

• Providing financial services

• Conducting monetary policy

• Issuing government securities

What is the role of economists at the reserve banks?

• Conducting bank examinations

• Issuing government securities

• Setting interest rates

• Preparing reserve bank presidents for FOMC meetings

What is the main function of Fed examiners when they visit commercial banks?

• Issuing government securities

• Setting the federal funds rate

• Evaluating the quality of assets

• Issuing government checks

What is the purpose of the discount window in the Federal Reserve System?

• To supervise commercial banks

• To issue government securities

• To regulate the stock market

• To provide short-term loans to banks

What is the long-term goal of the Federal Reserve related to inflation?

• To eliminate inflation

• To stabilize inflation

• To ignore inflation

• To increase inflation

What is the website where one can find more information about the Federal Reserve System?

• FederalReserveSystem.org

• FederalReserveEducation.org

• FederalReservePolicy.org

• FederalReserveInsights.org