Econ Review

Which group sets the Board of Governors of the Federal Reserve System?

• The Board of Governors

• The Treasury Department

• The Federal Open Market Committee

• The Council of Economic Advisers

Which form of money is considered currency?

• Currency

• Coins

• Checks

• Deposits

What term describes paper money and coins in circulation?

• Currency

• Coins

• Stocks

• Bonds

What are bank holding companies?

• Banks owned by individuals

• Companies that own one or more banks

• International banks

• Credit unions

Which banks own the Federal Reserve Banks?

• Investment banks

• Commercial banks

• Credit unions

• Foreign banks

Why is the Federal Reserve called the 'banker's bank'?

• It sets tax rates

• It controls government spending

• It directs open market operations

• It prints money

About what percentage of banks in the U.S. are members of the Federal Reserve System?

• 10%

• 25%

• 40%

• 100%

Which agency makes paper currency in the U.S.?

• Federal Reserve

• Bureau of Engraving and Printing

• U.S. Treasury

• Federal Mint

What ensures that the Federal Reserve is independent from politics?

• It is funded by taxes

• It is owned by the government

• It is controlled by Congress

• It is run by the President

How does new money enter the economy?

• Through taxation

• Through printing

• Through bank loans

• Through foreign exchange