The Federal Reserve System: Structure and Functions

What is the primary purpose of the Federal Reserve System as established by the Federal Reserve Act of 1913?

• To create a monetary system capable of responding effectively to banking system stresses and ensuring financial stability.

• To regulate international trade policies.

• To provide loans to small businesses.

• To manage the stock market.

How many members are on the Board of Governors of the Federal Reserve System?

• 7

• 12

• 14

• 10

What is the main role of the Federal Open Market Committee (FOMC)?

• Setting U.S. monetary policy.

• Supervising financial institutions.

• Providing financial services to banks.

• Operating the national payments system.

Which of the following is NOT a function of the Federal Reserve System?

• Regulating international trade.

• Conducting national monetary policy.

• Maintaining financial system stability.

• Protecting consumers' credit rights.

What is the term length for members of the Board of Governors of the Federal Reserve System?

• 14 years

• 10 years

• 7 years

• 12 years