Federal Reserve

How many districts are there in the Federal Reserve System?

• 3

• 7

• 12

• 19

Which of the following encouraged Congress to create the Federal Reserve System?

• Stock market crash

• High inflation

• High unemployment

• Banking panics

Which part of the Federal Reserve System is responsible for monetary policy?

• Board of Governors

• Federal Reserve Banks

• Federal Open Market Committee

• Federal Reserve Advisory Council

Which part of the Federal Reserve System serves as the “bankers bank”?

• Board of Governors

• Federal Reserve Banks

• Federal Open Market Committee (FOMC)

• Department of Treasury

How many governors make up the Board of Governors?

• 3

• 7

• 12

• 19

 Federal Reserve economists generally agree that the economy performs well when:

• There is no inflation.

• Inflation is low and prices are stable.

• There is no unemployment.

• Stock market values are rising.

 The Federal Open Market Committee (FOMC) is composed of:

• The members of the Board of Governors and the Reserve Bank presidents.

• The members of the Board of Governors and the U.S. President.

• The U.S. President and the Federal Reserve Bank presidents.

• The Federal Reserve Bank presidents and the U. S. Secretary of Treasury.

How are the tasks of regulation and supervision of the banking system completed by the Federal Reserve System?

• The Board of Governors regulates, the Reserve Banks supervise

• The Reserve Banks regulate, the Board of Governors supervises

• The FOMC regulates, and the Board of Governors supervises

• The Board of Governors regulates, the FOMC supervises

The FOMC determines the target range for which important interest rate?

• Student loan rate

• Mortgage rate

• Federal funds rate

• Prime rate

How are the members of the Board of Governors selected?

• They are appointed by the President and confirmed by the U.S. Senate.

• They are appointed by the U.S. Senate and confirmed by the President.

• They are elected every four years during presidential election years.

• They are appointed by the U.S. Secretary of the Treasury.