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federal reserve system review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

the goals of monetary policy do NOT include the promotion of____________?

a)

maximum employment

b)

stable prices

c)

moderate long-term interest rates

d)

low taxes

2.

in which city is the Board of Governor's office located?

a)

Philadelphia

b)

Boston

c)

Washington D.C.

d)

New York City

3.

which is NOT a Monetary Policy tool?

a)

discount rate

b)

balance account

c)

open market operation

d)

reserve requirements

4.

FOMC, the policy making body of the Federal Reserve, stands for_________?

a)

Fiscal Operating Money Committee

b)

Federal Open Market Committee

c)

Financial Options Management Corporation

d)

Final Organized Money Company

5.

inflation is a sustained increase in the general level of________?

a)

prices

b)

accounts

c)

income

d)

profit

6.

Federal Reserve Board of Governors members serve _______ terms to insulate them from political influence.

a)

7 years

b)

14 years

c)

25 years

d)

lifetime

7.

which Federal Reserve Bank always has voting rights on FOMC?

a)

Dallas

b)

Kansas City

c)

New York

d)

Chicago

8.

the minutes of each FOMC meetings are published and available to the public.

a)

true

b)

false

9.

Monetary Policy refers to what the Federal Reserve does to influence the amount of____and____in the U.S. economy.

a)

interest and debt

b)

currency and gold reserves

c)

money and credit

d)

taxes and revenue

10.

Federal Reserve Board of Governors members are appointed by the____and confirmed by the____.

a)

treasury; congress

b)

public; house of representatives

c)

president; senate

d)

federal reserve presidents; treasury

11.

the federal funds rate is set by the FOMC and refers to______.

a)

the rate in which the treasury measures the deficiency

b)

the interest rate that banks use to lend to each other overnight

c)

the interest rate that banks are charged to borrow from the fed

d)

the rate that affects what fees banks charge consumers

12.

does increasing the money supply cause inflation or deflation?

a)

inflation

b)

deflation

13.

fee charge to borrow money.

a)

inflation

b)

interest

c)

discount rate

d)

reserve requirement

14.

the president selects one of the governors to serve as a chairman. how long does the chairman serve?

a)

2-year term

b)

5-year term

c)

4-year term

d)

3-year term

15.

in a recession, the fed would likely...

a)

increase the supply of money in the economy

b)

decrease the supply of the money in the economy

c)

keep the supply of the money in the economy the same