Federal Reserve Functions and Roles

What is the Federal Reserve often referred to as?

• America's central bank

• A local credit union

• A savings account

• A stock market

In what year was the Federal Reserve created?

• 1900

• 1913

• 1920

• 1935

What is one of the main purposes of the Federal Reserve?

• To create new banks

• To make the banking system safer

• To print money for individuals

• To manage personal savings accounts

What is one of the roles of the Federal Reserve?

• To make snacks more expensive

• To ensure banks are safe places to keep money

• To increase taxes

• To build new schools

Why is it important for the Federal Reserve to keep prices stable?

• So snacks become too expensive

• To ensure prices don't get too high

• To make everything free

• To increase inflation

What does the Fed control that affects your parents' mortgage payments?

• Interest rates

• Grocery prices

• School fees

• Electricity bills

How does the Fed help protect your family's money?

• By controlling the weather

• By managing bank security

• By controlling interest rates

• By providing free insurance

What happens when the Fed changes interest rates?

• It affects the weather

• It affects how much it costs to borrow money

• It affects the color of money

• It affects the size of coins

If interest rates go up, what happens to the cost of buying a new bike with a loan?

• It costs less

• It costs more

• It stays the same

• It becomes free

If a pizza cost $10 last year, what does the Fed try to prevent?

• The pizza costing $5

• The pizza costing $15

• The pizza costing $20

• The pizza being free