Federal Reserve System Overview

The video tutorial provides an in-depth look at the Federal Reserve, its structure, and its role in monetary policy. It explains the functions of the Federal Reserve, including regulating bank lending, providing currency, and offering loans to banks. The tutorial also covers the Federal Reserve's membership requirements, the Board of Governors, and the Federal Open Market Committee (FOMC), highlighting their roles in maintaining economic stability and controlling inflation.

What is the primary role of the Federal Reserve in the United States?

• To control the national budget

• To regulate the supply of money and interest rates

• To oversee the stock market

• To manage the country's fiscal policy

When was the Federal Reserve created?

• 1900

• 1913

• 1929

• 1945

How many districts is the United States divided into for the Federal Reserve System?

• 10

• 12

• 20

• 15

Which of the following is a service provided by the Federal Reserve?

• Setting tax rates

• Issuing credit cards

• Clearing checks between banks

• Providing insurance to depositors

What must commercial banks do to join the Federal Reserve System?

• Subscribe to stock in the regional Federal Reserve Bank

• Pay a membership fee

• Offer free checking accounts

• Provide loans to the government

What is the nature of the Federal Reserve as an institution?

• Fully governmental

• Fully private

• Non-profit

• Quasi-governmental

Who appoints the governors of the Federal Reserve?

• The House of Representatives

• The Supreme Court

• The Senate

• The President of the United States

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

• To regulate the stock market

• To set monetary policy

• To oversee fiscal policy

• To manage the national debt

How many members are there in the Federal Open Market Committee (FOMC)?

• 10

• 15

• 7

• 12

Which Federal Reserve Bank president has a permanent seat on the FOMC?

• San Francisco

• Chicago

• New York

• Dallas