Federal Reserve System Quiz

What year was the Federal Reserve System established?

• 1913

• 1929

• 1965

• 1945

How many members are on the Board of Governors?

• 12

• 7

• 5

• 9

Which of the following is NOT a goal of the Federal Reserve?

• Economic growth

• Maximum employment

• Currency devaluation

• Price stability

Where is the Board of Governors located?

• San Francisco

• Washington, D.C.

• Chicago

• New York

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

• Issue currency

• Provide financial services

• Regulate banks

• Control monetary policy

Which tool involves buying and selling government securities?

• Interest rate adjustments

• Open market operations

• Discount rate

• Reserve requirements

What happens when the Fed lowers the discount rate?

• Slows down inflation

• Decreases money supply

• Increases reserve requirements

• Encourages borrowing and spending

What is a con of the Federal Reserve System?

• Lender of last resort

• Lack of full transparency

• Independent from politics

• Economic stability

What is the term length for a member of the Board of Governors?

• 14 years

• 10 years

• 8 years

• 4 years

Which of the following is a pro of the Federal Reserve System?

• Regulates and supervises banks

• Limited public accountability

• Potential for economic manipulation

• Political influence