Federal Reserve System Quiz

What is the key role of the Federal Reserve as the nation's central bank?

• To regulate the stock market

• To maintain the safety of the banking system and the stability of the economy

• To collect taxes from citizens

• To manage the country's defense system

What role does the Federal Reserve System play in monetary policy?

• It has no role in monetary policy

• It is responsible for formulating and executing monetary policy

• It only advises the government on fiscal policy

• It solely prints currency

What is the Federal Reserve often referred to as?

• The Ultimate Lender

• The Bankers' Bank

• The National Treasury

• The Government's Bank

Who owns the Federal Reserve?

• Private banks

• The U.S. Government

• Foreign governments

• Individual investors

How is the Federal Reserve run?

• By the President of the United States

• By a group of selected bankers

• By an independent board of governors

• By the U.S. Congress

How does the Federal Reserve System maintain a stable banking system?

• By providing healthcare services

• By regulating international currency exchange

• By regulating banks and making loans to member banks

• By setting educational standards for schools

What financial service does the Federal Reserve System provide?

• It acts as a check clearing house for the federal government and banking for commercial banks

• It offers insurance policies for individuals and businesses

• It provides investment advice to the stock market

• It conducts audits on private corporations

What is at the top of the Federal Reserve Bank organizational structure?

• Open Market Committee

• 12 Regional Banks

• Board of Governors

• Federal Advisory Council

How many regional banks are part of the Federal Reserve Bank system?

• 5

• 10

• 12

• 15

How many members make up the Board of Governors of the Federal Reserve?

• Five

• Six

• Seven

• Eight