Federal Reserve Quiz

Where is the Federal Reserve located?

• Washington D.C.

• Los Angeles

Why was the Federal Reserve created?

• Due to banking panics

• To print money

What is a banking panic?

• When people rush to banks to pull out their money because of panic

• When banks close for a holiday

Why did people start taking their money out of the banks in the late 1800's and early 1900's in the United States?

• The banks were giving away free money.

• The economy was very uncertain and banks were closing down.

What was the purpose of the Federal Reserve Act?

• To print new money

• To ensure smaller banks have an emergency supply of money

What are the two primary goals of the Federal Reserve?

• To keep prices of products stable and make sure there are enough jobs

• To control the stock market and manage schools

How many groups is the Federal Reserve divided into to help run the economy?

• Three

• Five

Who picks the members of the Board of Governors?

• The President

• The People

What is the main task of the Board of Governors?

• To study the economy and write rules to keep it steady

• To pick the President

What does the Federal Open Market Committee do?

• It teaches students in school.

• It makes sure that the rules the Board of Governors create are followed.